Glencore Gets Offtake Deal on 220,000 Barrels a Day Acquiring Rosneft Stake

Glencore confirmed it's in a final stage of negotiations regarding the purchase of a stake of Russia's Rosneft as part of a consortium with the Qatar Investment Authority.

MOSCOW (Sputnik) – The new deal on the sale of a 19.5 percent stake in the Russian Rosneft oil giant to Glencore and the Qatar Investment Authority also includes a 5-year agreement that will give an additional 220,000 barrels a day for Glencore, the company said in a statement.

"Glencore confirms that it is in final-stage negotiations regarding a transaction involving the acquisition, as part of a consortium with the Qatar Investment Authority (the Consortium), of a 19.5% interest in the issued share capital of Rosneft for €10.2 billion (the Shares)," Glencore said on Wednesday.

The company added that the proposed arrangements stipulate a "5 year offtake agreement with Rosneft representing a sizeable additional 220,000 bbls/day for the Glencore Marketing business."

Glencore will also allocate 300 million euros (almost $323 million) as part of a consortium deal with the Qatar Investment Authority (QIA) for the acquisition.

"Under the proposed arrangements, Glencore would commit €300 million in equity (the Glencore Equity) with the balance of the consideration for the acquisition of the Shares to be provided by QIA and by non-recourse bank financing," the company added.