Rosneft acquires 49 pc stake in India’s Essar Oil

Rosneft acquires 49 pc stake in India’s Essar Oil

10:06 AM, 15th October 2016
Rosneft acquires 49 pc stake in India’s Essar Oil

MOSCOW, RUSSIA/VADINAR, INDIA: Rosneft Oil Company has signed a sale and purchase agreement to acquire 49 percent stake in Essar Oil Limited (EOL) from Essar Energy Holdings Limited and its affiliates.

Rosneft buys 49 percent of the oil refinery in Vadinar, one of the most sophisticated refinery in the Asia-Pacific region, possessing a complex infrastructure. EOL's business also includes a vast network of 2.7 thousand Essar branded retail outlets across India.

Acquisition of the stake in one of the largest and most sophisticated refineries in India and will enable Rosneft to enter the high-opportunity Indian market and boost the positions of the trading arm of the company in the Asia Pacific region. Key synergies sources will be represented by the possibility to process heavy oil from Venezuela and cross-supplies of oil products to APR markets. This will allow raising the economic efficiency of the refinery (GRM), which since the begging of EOL’s financial year (started in April 2016) exceeded $10/bbl.

The refinery currently demonstrates strong operational performance: the average GRM since the begging of EOL’s financial year (started in April 2016) exceeded $10/bbl.

“This is a significant milestone for the company. Rosneft is entering one of the most promising and fast-growing world markets. At the same time, this project provides unique opportunities for synergies both with the existing assets of the company and Rosneft's future projects, and opens a big potential for expansion of its presence on the markets of other APR countries, such as Indonesia, Vietnam, the Philippines and Australia,” said Igor Sechin, CEO of Rosneft.

The deal is being applied with the assistance of VTB Capital, which acting as an exclusive financial advisor of EOL’s current shareholders.

© Worldofchemicals News



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