• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 6 hours Here's your favourite girl, Tom!
  • 7 hours Brexit agreement
  • 2 mins Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 7 hours China's Blueprint For Global Power
  • 11 hours Australian Hydroelectric Plant Cost Overruns
  • 6 mins ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 16 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 3 hours Nigeria Demands $62B from Oil Majors
  • 14 hours IMO 2020:
  • 15 mins KURDS LEFT HIGH AND DRY TO DIE?
  • 7 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 8 hours 5 Tweets That Change The World?
  • 10 hours The Problem Is The Economy, Not The Climate
Is ISIS Back?

Is ISIS Back?

As the Syria debate rages…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

China Purchases 14% Of Rosneft From Qatar

China

China made a new move to strengthen its relationship with Russia this week by agreeing to buy a 14 percent stake in the oil and gas company Rosneft, according to a new report by the Associated Press.

The $9 billion purchase will transfer the Qatar Investment Authority’s 14.16 percent Rosneft stake to CEFC China Energy Company Ltd., Glencore said on Friday. China bought the shares at a 16 percent premium to the Rosneft share price over the past month. Final negotiations and regulatory approvals are needed before the exchange goes through, however.

“This deal intensifies the energy relationship between Russia and China. A direct stake in Rosneft will make CEFC China the main driver for the relationship of Rosneft with China, ahead of CNPC, Sinopec and Beijing Gas,” Wood Mackenzie senior analyst Christian Boermel said. “Rosneft keeps its customers close to its heart – buy a stake, get an oil supply agreement. CEFC China could soon take stakes in Rosneft projects, either in cash-intensive upstream projects, or in the downstream.”

The Russian government will continue to own a majority stake of Rosneft after the purchase.

China and Russia have been strengthening their relationship over the past few years as Moscow’s hold over the European energy market begins to weaken. The European Union and Russia have been at geopolitical odds regarding Syria, Ukraine, and several other issues, prompting the EU to seek new sources of natural gas.

The QIA and Glencore acquired a 19.5 percent stake in Rosneft just nine months ago. The resale occurred so soon because Glencore, QIA’s partner in the deal, and the QIA itself looked to reduce debt repayments, according to Rosneft CEO Igor Sechin. The two investors will still own just over 5 percent of Rosneft, which is the portion they purchased with cash, instead of via credit lines.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play