Russian oil giant Rosneft today confirmed that it had completed the acquisition of 49% of Indian firm Essar Oil.
The deal marks Rosneft’s entry into the fast-growing Indian market.
It gives Rosneft a stake in the Vadinar refinery, which the firm described as a first class asset with significant development potential
Located in the state of Gujarat, the refinery’s configuration is one of the most technologically complicated in the Asia-Pacific region.
And a consortium comprising Trafigura and UCP has also announced its purchase of a separate 49.13% share of Essar.
Essar has a vast retail network of over 3,500 branded fuel stations across India.
Rosneft chief executive Igor Sechin said: “This day marks the beginning of a new chapter for Essar. Together with our partners we intend to support the company to significantly improve its financial performance and, in the medium term, adopt an asset development strategy.
“The closing of the deal is a remarkable achievement for Rosneft too: the company has entered the high-potential and fast-growing Asia Pacific market.
“The acquisition of the stake in the Vadinar refinery creates unique opportunities of synergies with existing Rosneft-owned assets and will help improve efficiency of supply to other countries within the region.”