Russia's biggest oil company, Rosneft, successfully closed the acquisition of 49.13 percent of shares in the Indian oil company Essar Oil Limited (EOL), the company said Monday.
An investment consortium comprising one of the largest physical commodity trading groups,Trafigura, and a Russian independent private investment group United Capital Partners (UCP) also announced the closure of their acquisition of a separate 49.13 percent share of EOL, Rosneft announced.
EOL has a vast retail network of over 3,500 Essar-branded fuel stations across India.
"This sales channel will further improve the asset's operational and financial performance thanks to the steadily growing local demand for high added value oil products and EOL's retail development strategy," the company said.
"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," Rosneft's Chief Executive Officer Igor Sechin was quoted in reference to the transaction.
By Huseyin Erdogan
Anadolu Agency
energy@aa.com.tr