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    Rosneft Plans to Close Deal on Stake in India’s Essar Oil Refinery in 2016

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    Russia's oil giant Rosneft and India's Essar Oil refinery have reached a preliminary agreement on the deal which will allow for the two companies to create a long-standing partnership between Russia and India in the hydrocarbon sector.

     NEW DELHI (Sputnik) – Rosneft plans to close the deal on purchasing a 49 percent stake in the Indian Essar Oil Ltd refinery in 2016, Rosneft CEO Igor Sechin said.

    “We’ve negotiated (with Essar on purchasing a 49 percent stake in the refinery – Ed.), and reached a preliminary agreement on terms and procedures of closing the deal. We’ll have to receive the necessary permits, and the deal will be closed in 2016,” Sechin said. Speaking about the documents signed on Wednesday, he added that the market would be informed on the details of the deals some time later.

    “Following the signing of these documents, Rosneft will be able to work with its Indian partners. Our cooperation model provides for the involvement of Indian companies in upstream projects in Russia, and Rosneft will get access to the Indian market, thus creating a safe energy bridge between our countries,” Sechin said.

    Indian Petroleum and Natural Gas Minister Dharmendra Pradhan said that Russia is a longstanding and time-tested partner of India. “We are happy that India and Russia have attained high levels of understanding and cooperation in almost all areas of the bilateral relationship. We are committed to working together to further strengthen the India-Russia partnership in the hydrocarbon sector”.

    In July 2015, Rosneft and Essar Oil Ltd signed a number of agreements, according to which Russia will participate in the Essar refinery in the town of Vadinar with a stake of up to 49 percent and will supply 10 million tons of oil per year to this refinery for 10 consecutive years. The refinery’s capacity is expected to more than double – from the current 20 million tons per year to 45 million tons by 2020.

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    stake, Essar, Rosneft, Igor Sechin, India, Russia
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