• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 4 hours OPEC will consider all options. What options do they have ?
  • 4 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 53 mins Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 7 hours What to tell my students
  • 5 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 4 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 11 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 5 hours China Threatens to Withhold Rare Earth Metals
  • 7 hours With Global Warming Greenland is Prime Real Estate
  • 20 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 19 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 16 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 21 hours Flaring is at Record Highs in Texas
A Limited Risk Play In A Shaken Market

A Limited Risk Play In A Shaken Market

Recession fears tanked stock markets…

Rosneft, Trafigura, UCP Set to Buy 98 Percent Of India’s Essar Oil

Essar Tank Truck

Russia’s oil giant Rosneft, oil trader Trafigura and Russian investment fund UCP will buy 98 percent of India’s Essar Oil in a deal valued at US$12-13 billion, which includes the Indian firm’s US$4.5 billion debt, Reuters reported on Thursday, quoting sources familiar with the transaction.

Rosneft will receive 49 percent of Essar Oil, while Trafigura and UCP will equally share the other 49 percent, the Reuters sources said.

The deal is expected to be announced by the Indian company this coming Saturday when Russian President Vladimir Putin visits India for bilateral talks with Prime Minister Narendra Modi.

In March of this year, Rosneft confirmed its interest to buy into the share capital of the Indian company. The two parties had also agreed that Rosneft would deliver crude to Essar Oil’s Vadinar refinery. Back then, the parties, which had reached a preliminary understanding on a deal, expected to sign and close the transaction by June.

In August, however, Indian media reported that the planned sale in Essar Oil to Rosneft may have run afoul of the U.S., which has Rosneft on the list of sanctions it had imposed over Russia’s annexation of Crimea. Essar Oil’s owners, the Ruia brothers, had initially sought to sell 74 percent to Rosneft, but reduced the share to 49 percent to avoid the company being categorized as a subsidiary of a group that has U.S. sanctions imposed.

Related: Israel, Turkey Discuss Energy After Years Of Diplomatic Silence

According to the Reuters report, Rosneft would indeed get 49 percent of Essar Oil, which claims that its 400,000-barrel-per-day Vadinar refinery contributes to more than 9 percent of India’s total crude oil refining capacity.

On the eve of what it looks like an imminent announcement of the deal, other news outlets report a different percentage division within the transaction. According to India’s The Economic Times, Rosneft would buy 49 percent of Essar Oil, while Trafigura would acquire 24 percent, and an unnamed sanctions-compliant fund would acquire 15 to 20 percent, which would leave the current owners, the Ruia brothers, with a stake of between 5 percent and 8 percent, or even less.

By Tsvetana Paraskova 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