• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 2 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 7 hours Climate Change Protests
  • 7 hours Oil at $40
  • 10 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 7 hours "Undeniable" Shale Slowdown?
  • 9 hours China To Promote Using Wind Energy To Power Heating
  • 31 mins Gas Flaring
  • 5 hours How many drilling sites are left in the Permian?
  • 22 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 2 hours Japan’s Deflation Mindset Could Be Contagious
  • 7 hours Negative Gas Prices in the Permian
  • 18 hours Ecoside
  • 1 day Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
Think Tank: Mexico’s New Refinery Already Doomed

Think Tank: Mexico’s New Refinery Already Doomed

Mexican President Andrés Manuel López…

The Oil Price Anomaly Turning Into A Trend

The Oil Price Anomaly Turning Into A Trend

This week’s narrative in oil…

Chinese Energy Conglomerate Begins Talk to Buy Rosneft Shares

Rosneft HQ

A Chinese energy conglomerate is in early talks to buy a stake in Russian energy giant Rosneft, according to exclusive sources who spoke to Reuters.

Senior executives at both firms have begun negotiations regarding a deal, the sources told the news agency. Already, CEFC China Energy chairman Ye Jianmin and Rosneft CEO Igor Sechin have held two meetings regarding future agreement.

Reuters sources did not reveal information on the cost of the deal, but one source suggested Rosneft would be open to selling the Chinese company a portion of its retail business, which includes 150 storage facilities, as well as thousands of filling stations and gasoline tankers.

CEFC plans to expand its influence by becoming an international energy company through its involvement with Russian oil and gas companies.

So far, Rosneft has sold a 19.5 percent stake to Glencore and the Qatar Investment Authority (QIA—a sovereign wealth fund) for $11.8 billion. Both Glencore and the QIA told The Wall Street Journal that the deal’s details did not include a right for Russia to buy back Rosneft shares from the Glencore-QIA consortium they had formed for the deal.

British Petroleum owns 19.75 percent of the company. An additional sale of shares that would reduce the Russian government’s ownership to below 50 percent would require a special governmental decree.

"We consider the Chinese market as the most promising and actively developing. The company will increase its cooperation with Chinese partners in all business areas and make public statements accordingly as joint projects are developing," the company told Reuters over email.

Related: Oil Futures Point To Higher Oil Prices

Russia supplies the most oil to China of all of the country’s most prominent suppliers, including OPEC leader Saudi Arabia.

Beijing Gas attempted to purchase a 20 percent stake in Rosneft last year but it is unclear if that deal went through.

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