New Delhi: A week after the European Union announced sanctions on Russia’s Rosneft-backed Nayara Energy Ltd’s Gujarat refinery, its chief executive Alessandro des Dorides has resigned.
Nayara has appointed its chief development officer Sergey Denisov as its new CEO, said two people in the know of the developments.
On 18 July, targeting Russia’s ability to raise oil and energy revenues as it wages a prolonged war with Ukraine, the EU unveiled sanctions on Nayara’s 20-million tonne refinery in Vadinar, Gujarat.
Desinov’s would now have to implement Nayara’s investment plans in India.
Per his LinkedIn account, as Nayara’s chief development officer Desinov “led cutting-edge Vadinar refinery major projects, more than $1bn (are) under execution, (and he is) spearheading a comprehensive $20Bn feasibility study for a new refinery and steam cracker complex”.
Nayara did not immediately reply to Mint’s queries.
Nayara contributes around 8% to India’s total refining capacity, 7% of the country’s retail petrol pump network, and about 8% of its polypropylene capacity.
The company also employs over 55,000 direct and indirect employees across India. It has the largest network of fuel stations (6,700) among private oil marketing companies across the country.
Des Dorides spent much of his career at Italian major Eni SpA. He became Nayara’s CEO in March 2024.
Reuters earlier reported that Denisov’s appointment was confirmed on Wednesday.
Nayara’s webpage doesn’t list its key executives. Denisov didn’t immediately respond to messages sent via his LinkedIn account.
Nayara’s India footprint
Data from S&P Global showed that Nayara Energy’s Vadinar refinery has received 403,000 barrels per day of crude so far this year, of which 72% was Russian-origin crude grade.
“The recent EU sanctions against Rosneft, which owns about 49% of Nayara refinery, are set to create significant challenges for Nayara as it is likely to have a pronounced impact on its jet fuel and kerosene sales, which were primarily being exported to Europe,” Abhishek Ranjan, South Asia oil research lead at S&P Global Commodity Insights, said in a report issued on Thursday.
Noting that the EU’s sanctions may push Nayara to look toward non-EU markets such as Africa, Latin America and Southeast Asia, S&P Global Commodity Insights said the company could consider supplying the displaced volumes to domestic markets.
In a statement on 21 July, hitting back at the European Union’s sanctions, Nayara reiterated its commitment to India’s energy security and long-term growth, announcing plans to invest over ₹70,000 crore in the long term across petrochemicals, ethanol plants, marketing infrastructure, and other projects.
Nayara also said the EU’s actions undermined India’s sovereignty and disregarded global norms.
Describing the European bloc’s move as baseless, unilateral and a breach of international law, Nayara said it was actively exploring legal options and would counter the EU’s decision.
Denisov joined the company in October 2017, two months after Rosneft purchased a 49.13% stake in Essar Oil Ltd from Essar Energy Holdings Ltd and its affiliates, rebranding the entity as Nayara Energy the following year.
Prior to that, he was with British oil and gas company BP Plc. for more than six years.
Nayara has expanded its retail footprint in India, increasing the number of outlets from 6,570 to 6,760 over the course of a year. In 2023-24, 82% of its diesel and 65% of its gasoline production were sold domestically, according to S&P Global Commodity Insights data.
Source link
[ad_3]
[ad_4]