• 4 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 14 minutes The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 39 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 7 hours Coal Boom in Asia is Real and a Long Trend
  • 4 hours The Plastics Problem
  • 15 hours Hydrogen FTW... Some Day
  • 1 hour Solar Panels at 26 cents per watt
  • 1 day China's President Xi To Visit North Korea This Week
  • 1 day OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 17 hours GM Considering Electric Hummer
  • 4 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 13 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 4 hours Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 1 day Forbes: Giant Floating Solar Farms Could Extract CO2 From Seawater, Producing Methanol Fuel.
  • 1 day Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 1 day Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack

Breaking News:

Oil Stabilizes On Small Crude Draw

Alt Text

Is This The Best Dividend Stock In Oil & Gas?

Supermajors have had a tough…

Alt Text

Energy Majors Face Off To Get A Piece Of This $40 Billion Deal

International energy companies are descending…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

This Oil Giant Just Landed India’s Largest Foreign Investment Deal Ever

I wrote late last year about an unusual trend emerging in oil and gas M&A. Namely, a wave of outgoing global investment from E&P firms in Russia.

And news this week confirmed that Russia is on the rise when it comes to global petroleum deals.

Russian petro-major Rosneft announced that it is near closing on one of its biggest acquisitions ever: India’s Essar Oil. With the company’s CEO, Igor Sechin, telling shareholders at the annual general meeting that one of the last hurdles to the mega-deal has now been removed.

Sechin noted that Essar’s creditors have withdrawn any objections to the Rosneft takeover. Now allowing the deal to move forward.

And the deal is a massive one.

Rosneft itself will buy a 49 percent interest in Essar. And the E&P firm will bring in Russian investment company United Capital Partners to take a further 24 percent, while commodities trader Trafigura also buys 24 percent.

That will give the incoming buyers near-total control of Essar. With the pricetag for the deal coming to $13 billion — making it India’s largest-ever incoming foreign investment.

The assets this opens to Rosneft are significant. With Essar holding a key spot in India’s downstream petroleum industry — including ownership of the country’s second-largest refinery, as well as a network of gas stations.

Beyond the assets, the deal is an important sign of geopolitical alignment. With Russia continuing to play a key role in India’s business sector, and beyond. Related: The Biggest Obstacles For China’s $900 Billion Silk Road

That could be a very strategic move for Rosneft and other companies. With India right now attempting to open up more oil and gas development across the country — and holding numerous basins onshore and offshore with big potential.

Russian firms may now have a front seat for such new project opportunities here. Watch for more deals from Russia’s E&Ps in country, and for Rosneft in particular to use Essar as a platform to build a new energy stronghold.

Here’s to going forth.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • priya chandak on August 22 2017 said:
    India and Russia’s largest outbound deal; Rosneft to take 49% in Essar Oil

    A major deal between Essar Oil and a consortium led by Russian oil major Rosneft completed a $12.9 billion deal today.

    Rosneft will get a 49% stake in Essar, while the other two major investors Trafigura, a European trader and a Russian fund UCP, will hold the other 49% in equal parts. This acquisition is one of the largest outbound deals between India and Russia in recent times since the Soviet era.

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News