Rosneft closes deal to buy 49% stake in Essar Oil

[Paranoid Android]

MOSCOW: Russia's largest oil producer Rosneft said on Monday it had successfully closed a deal to buy a 49 per cent stake in private refiner Essar Oil Limited (EOL).

An investment consortium comprising Trafigura and UCP has also announced the closure of their acquisition of a separate 49 percent share of EOL.

"Together with our partners we intend to support the company to significantly improve its financial performance and, in the medium term, adopt an asset development strategy," Rosneft cited its CEO Igor Sechin as saying in a statement.

Essar Oil operates a 400,000 barrel-per-day oil refinery in Vadinar on India's west coast and sells fuels through its 3,000 retail stations in India. The deal also includes the Vadinar port and a power plant associated with the refinery.

The deal, initiated about two years ago, will help Rosneft in gaining access to India's rising fuel retail market.

Rosneft and Trafigura are the latest international companies after Royal Dutch Shell and BP to enter the Indian fuel retailing market.

Rosneft may supply Venezuelan oil to Essar's Vadinar refinery after a deal to buy a stake in the Indian company is finalised, the Indian company's managing director L.

http://timesofindia.indiatimes.com/...9-stake-in-essar-oil/articleshow/60154428.cms

http://www.business-standard.com/ar...omplete-12-9-billion-deal-117082100061_1.html

 

[wiseone2]

MOSCOW: Russia's largest oil producer Rosneft said on Monday it had successfully closed a deal to buy a 49 per cent stake in private refiner Essar Oil Limited (EOL).

An investment consortium comprising Trafigura and UCP has also announced the closure of their acquisition of a separate 49 percent share of EOL.

"Together with our partners we intend to support the company to significantly improve its financial performance and, in the medium term, adopt an asset development strategy," Rosneft cited its CEO Igor Sechin as saying in a statement.

Essar Oil operates a 400,000 barrel-per-day oil refinery in Vadinar on India's west coast and sells fuels through its 3,000 retail stations in India. The deal also includes the Vadinar port and a power plant associated with the refinery.

The deal, initiated about two years ago, will help Rosneft in gaining access to India's rising fuel retail market.

Rosneft and Trafigura are the latest international companies after Royal Dutch Shell and BP to enter the Indian fuel retailing market.

Rosneft may supply Venezuelan oil to Essar's Vadinar refinery after a deal to buy a stake in the Indian company is finalised, the Indian company's managing director L.
http://timesofindia.indiatimes.com/...9-stake-in-essar-oil/articleshow/60154428.cms

what is the dollar value behind the transaction ?

 

[Chhatrapati]

what is the dollar value behind the transaction ?

Around $12.9 Billion..

It will be India's single largest FDI.

 

[Stephen Cohen]

Around $12.5 Billion..

It will be India's single largest FDI.

Correction ; it is 12.9 billion USD

http://www.asianage.com/business/co...ft-takes-over-after-usd-129-billion-deal.html

 

[Paranoid Android]

what is the dollar value behind the transaction ?

Deal was valued at $10.9 billion for Rosneft..

Three way consortium( Rosneft, United Capital Partners and Trafigura group) is paying an additional of $2 billion for the acquisition of Vadinar Port.

So, 10.9+2=12.9 Bn

 

[wiseone2]

Around $12.5 Billion..

It will be India's single largest FDI.

how come the times of india article did not say that ? shody journalism

 

[sameerin]

how it is beneficial for India?

 

[wiseone2]

how it is beneficial for India?

good question

 

[StraightShooter]

how it is beneficial for India?

This is a barter system deal to bypass the sanctions currently in place on Russia. No transfer of currencies between the countries. Just swapping of the goods and assets between the countries. For example India gets stake in Russian Oil fields while Russia gets a stake in Indian refineries.

 

[sameerin]

This is a barter system deal to bypass the sanctions currently in place on Russia. No transfer of currencies between the countries. Just swapping of the goods and assets between the countries. For example India gets stake in Russian Oil fields while Russia gets a stake in Indian refineries.

we can call it "adla-badli".