Rosneft confirmed interest in Essar Oil

During the visit to India Rosneft Chairman of the Management Board Igor Sechin has held negotiations with the Management of Essar. Preliminary mutual understanding has been achieved on the timing and structure of a deal to buy into the equity of Essar Oil Limited. The parties intend to sign and close the transaction by the end of June 2016 upon obtaining all necessary permits. In addition an agreement on crude oil deliveries to commence this year has also been achieved.

The capacity of Essar Oil’s Vadinar refinery currently amounts to 20 MMTPA. This refinery is the second largest in India and one of a top ten world’s best refineries. The refinery is highly flexible in terms of raw materials use and is capable of refining heavy and sour oil grades. Essar Oil Limited plans to implement the modernization program expanding the refinery’s capacity up to 25 million tonnes per annum including production of 1 million tonnes per annum of propylene/polypropylene.

Essar Oil Limited also owns an operational network of 2,000 fueling stations in India. The company’s plans include expanding the network up to 5,000 stations. Deregulation of pricing at the Indian retail market opens perspective of retail sales growth.