Rosneft, the Russian oil giant, is expected to join BP and Shell into India’s fuel retail market having acquired a stake in Essar Oil, a news report said.
Russian fund UCP and European trader Trafigura will enter into the deal alongside Rosneft, as reported by Reuters, citing unidentified sources close to the deal.
This $12 billion deal will see Rosneft sweeping a 49% stake for themselves while, Trafigura and UCP taking up the rest, the report said.
According to another source, Western-sanction-hit bank VTB will be financing the deal, which could be sealed today during Russian President Vladimir Putin’s visit to India.
According to the report, Essar, controlled by the billionaire Ruia brothers, has an operation of about 400,000 barrel-per-day oil refinery on the Indian west coast. The company is said to be selling fuels through its 2,470 filling stations across the subcontinent.
According to Rueters’ last week’s reports, BP has a pan of opening up about 3,500 ore stations in India, a market they’ve already penetrated.
October 15, 2016