The board of OAO Rosneft on Sunday appointed First Vice-President Eduard Khudainatov, a former Gazprom executive, as the head of Russia's state-controlled oil major as its profits grew 37%. The board took less than a day to approve Russian President Dmitry Medvedev's order to nominate Khudainatov to the post. He starts in his new position Monday replacing Sergei Bogdanchikov who only last week told reporters, "I will certainly not resign, I am a Rosneft shareholder, I am Rosneft president, a member of the board of directors, I feel devotion towards it."

Russian companies will supply about 70 percent of the required oil at market prices for a joint refinery project involving China's CNPC and Russia's Rosneft, China's Energy Minister Zhang Guobao said on Tuesday.

"The issue is resolved following friendly talks," Guobao said after an energy cooperation subcommittee meeting between the two countries.

Sergei Bogdanchikov, the president of Rosneft, Russia's state-controlled oil giant, has denied a media report that he will soon resign."I will certainly not resign, I am a Rosneft shareholder, I am Rosneft president, a member of the board of directors, I feel devotion towards it," he said on Wednesday.

Earlier on Wednesday, Vedomosti business daily quoted a banking source saying that Bogdanchikov may quit in the near future. Rumors about his resignation have appeared previously.

The Russian oil company Rosneft plans to increase its oil production to 133 million tones a year by 2015, up from 119 million tones now, the company's Vice President Mikhail Stavsky said Saturday, according to Voice of Russia

Easing Economy, Tightening Nerves

Is ONGC of India about to buy an equity stake in Rosneft – Indian media are – again - speculating about this (see below) Asia’s equity markets have fallen again today and are trading at a two-week low after the US Fed said that it sees slower growth in the economy and acted to add additional stimulus to try and boost growth. Asia’s loss is led with a 2.7% decline for the Nikkei and a 1.8% drop in the benchmark Australian index. The former because of further gains in the yen and the latter as commodity prices are weaker.

Bonhomie for Dudley, hints of a job for Hayward in Moscow

By John Bonar

"And now Mr Dudley is back!" Russia's energy czar, Deputy Prime Minister Igor Sechin exclaimed with a laugh when he met

BP Plc's new Chief Executive Robert Dudley and his predecessor Tony Hayward on Wednesday. The trio met in the Moscow headquarters of Rosneft, Russia's top  oil producer where Sechin is chairman. Despite the acrid smoke fog blanketing Moscow from peat fires smouldering in the surrounding region the three men appeared in good spirits and joked with each other.

The Return of the Prodigal Oilman

Asia’s markets are again following yesterday’s trend in the US markets. The MSCI Asia-Pacific Index is off 0.7% with the Nikkei down 2.2%. That is because the yen is higher (at 85.45 to the dollar) and investors are worried about the loss of export competitiveness. China equities are also lower; the CSI is off 0.9%, on fears of possible Central Bank tightening in the autumn. The dollar-euro rate is at $1.3212, slightly off from yesterday’s closing level of $1.3229, and gold is edging higher. It last traded at $1,195.1 per ounce. A small reaction to the nervousness about global growth that has come from the disappointing manufacturing reports this week. Copper if off 0.5% after yesterday’s 1.1% decline.

Russia's largest oil producer OAO Rosneft announced an increase of second-quarter net profits last week of  59% on higher oil prices and increased crude output at its Vankor field. London-listed Rosneft said net profit rose to $2.56 billion from $1.61 billion a year earlier.

China Boosts Confidence

China’s decision to move to a more flexible Yuan policy, effectively a revaluation of the currency, has boosted confidence in the global recovery and helped Asia’s markets to start the new week with across the board gains. The MSCI Asia Pacific Index is up 2.0%. Hong Kong is 2.3% better in mid session and Chinese equities are 0.6% better.