Prime Minister NARENDRA MODI during his visit to Ufa, Russia, for the BRICS Summit,a term sheet pertaining to the deal was signed between the two companies. Through the deal, Russian Government-owned oil company ROSNEFT will acquire 49 percent of Shashi Ruia’s ESSAR OIL.
- Rosneft will buy 49 percent stake in Essar Oil for about USD 3.2 billion after excluding the Mumbai-based firm’s flourishing coal-bed methane (CBM) business.
- Through this agreement, Rosneft will also get a stake in Essar Oil’s retail chain of 1,600 stations and the two companies plan to increase it to 5,000 within the next two years.
- This agreement will ensure supplies of 10 Million Tons per annum of crude oil and feedstock to Essar’s Vadinar refinery over a period of 10 years.
Rosneft, is an integrated oil company majority owned by the Russian Government.
- It has its headquarters in Moscow’s Balchug district,Russia.
- It was founded in the year 1993.
- It has employees of 106,000 with revenue of $ 102. Billion (2012).
- It is the leader of Russia’s petroleum industry and the world’s largest publicly traded petroleum company.
Essar Oil owns India’s second largest single site refinery having a capacity of 20 MMTPA and complexity of 11.8, which is amongst the highest globally.
- It has its headquarters in Mumbai, Maharashtra.
- It owns 1,600 retail outlets in India and holds over 1.7 billion barrels of oil.
- It has its operations in more than 25 countries across five continents.
- Essar employs over 73,000 people and has revenues of $39 billion.