NK “Rosneft” has created a pool of Indian investors in Greenfield projects and acquired a strategically important stake in the local oil refining.
PAT Rosneft and India’s ONGC Videsh Limited in the framework of the BRICS summit signed an agreement on the preparations for the closing of the acquisition of the Indian company an additional 11% in JSC “Vankorneft”, said the representative of “Rosneft”. The previous deal — the sale of ONGC Videsh Limited 15% “Vankorneft”, was closed on may 31.
on 5 October the Company successfully closed the sale of 23.9% in JSC “Vankorneft” consortium of Indian companies comprising Oil India Limited (a consortium headed), Indian Oil Corporation Limited and Bharat PetroResources Limited. Overall, the percentage of Hindus in the Vankor was 49 %. A project to create a unique international energy hub on the basis of Vankor cluster is thus “Rosneft” in a short time.
in addition, Rosneft has closed the acquisition of the Indian consortium of 29.9% interest in TAAS-Yuryakh.
the Involvement of partners in East Siberian Greenfield projects not only provides investment, allows to share risks and funding, but also leads to an increase of Russia’s share in the fast-growing Asian markets, as an incentive to long-term contracts.
In partnership with Indian companies Rosneft adheres to the integrated approach. Actively developing cooperation with the leading Indian players in the upstream region, involving them in the development of promising Greenfield projects, “Rosneft” has started a large-scale project in oil refining, which, apparently, will allow the company to gain a foothold on the South Asian market.
NK “Rosneft” signed a contract for the sale of 49% stake in Essar Oil Limited (“EOL”) of Essar Energy Holdings Limited and the affiliated companies controlled by the family Ruya, said the representative of “Rosneft”. On Thursday, the deal was unanimously approved by the Board of Directors of PJSC “NC “Rosneft”.
as a result, “Rosneft” becomes a co-owner with a share of 49% of one of the most modern refineries in Asia and the Pacific in Vadinar, which has a complex infrastructure. Business EOL also includes a large network of filling stations in India, with 2.7 thousand stations operating under the brand Essar.
the capacity of the refinery Vadinar included in the perimeter of the transaction is 20 million tons, refining depth of 95.5%. The deal will provide access to the one of the fastest growing Asian Indian market.
it is Reported that the acquisition cost of NK “Rosneft” and a consortium of international investors, which will also include Trafigura, 100% of the business EOL will amount to 12.9 billion dollars. USA. The acquisition price for the 49% stake in favor of “Rosneft” will be determined based on the actual values of net debt and net working capital at the closing of the transaction. Necessary for closing procedures, including harmonization of international antitrust authorities, will be completed before the end of the year. The transaction is implemented with the support of VTB Capital is acting as exclusive financial Advisor to current shareholders EOL.
the Acquisition of a stake in one of the largest and most modern refineries of India will allow “Rosneft” not only to enter the promising Indian market, but also to bring the activities of trading unit to a leading position in the Asia-Pacific region. The main sources of synergy is the ability of processing heavy oil from Venezuela and the cross-supply of petroleum products to Asia-Pacific markets that would further enhance the economic efficiency of the refinery, and today outperforming.
According to the recently published data from the International energy Agency, India will become the world’s main driver of growth in the motor fuel market: by 2040, the consumption of motor fuel in this country will double to 10 million barrels per day, and in 2017 gasoline consumption will grow by 12%.
Commenting on the transaction, chief Executive officer of PJSC “NC “Rosneft” Igor Sechin said: “This is a historic event for the Company – “Rosneft” goes on one of the most promising and fastest growing markets in the world. The project creates a unique synergistic opportunities for existing Company assets and planned projects of Rosneft and opens the prospects for increasing efficiency of deliveries to the markets of other Asia-Pacific countries, such as Indonesia, Vietnam, Philippines, Australia”.
In the framework of the BRICS summit Rosneft and ONGC Videsh Ltd (as coordinator of the group of leading Indian oil and gas companies) in the presence of the President of the Russian Federation Vladimir Putin and Prime Minister of the Indian Republic, Narendra modi was also signed an agreement on cooperation in the field of education. According to them, the companies will be able to undergo relevant training in educational establishments of the two countries on the most modern programs of different levels and to share experiences.
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