Sechin's new five-year term will begin on May 24, 2020.
Sechin, a close ally of Russian President Vladimir Putin, has headed the national oil titan since 2012. The executive's original contract covered a three-year term, which was renegotiated to five years in 2015. The Russian government extended Sechin's contract on May 20 – the agreement was due to expire this month. Sechin served as Chairman of the company's Board of Directors prior to being appointed CEO.
At a meeting with Vladimir Putin on May 12, Sechin requested that the state support the national oil industry, which has been struggling due to the impending OPEC+ production cuts and the fall in commodity prices caused by the coronavirus pandemic.
Rosneft, which posted production of 4.7 million barrels of oil per day in 2019, accounts for more than 40% of Russia’s total oil output. The company reported a net profit of 708 billion roubles last year ($9.89 billion at current rates).
The company incurred losses of some $2 billion in Q1 2020. Rosneft said last week that its output would decline by 24 million tonnes (10%) this year as part of Russia’s quota under the new OPEC+ output deal.
Rosneft recently filed a defamation lawsuit against media outlet RBC over an article concerning the transfer of its Venezuelan assets to the Russian government. The company claims that the article misconstrued the nature of the deal, and has demanded the recovery of 43 billion roubles ($610 million) of 'reputational damages' from RBC.