Rosneft to sign deal with Essar soon, says Ruia

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Discussions between Rosneft, the world’s largest publicly traded oil company, and Indian oil refiner Essar Oil to acquire a 49 per cent stake in the latter are set to enter their final leg.

Essar Oil director Prashant Ruia on Friday confirmed to mediapersons the two companies could sign a binding agreement to this effect soon with the transaction subsequently expected to complete on or before October.

With this transaction, Rosneft will gain access to the Essar-operated Vadinar refinery, the second largest single site oil refinery in India, with a capacity of 20 million tonnes per annum.

In an earlier statement, Rosneft had said it will also supply 10 million tonne of crude per annum to the Vadinar refinery in Gujarat for 10 years.

“In addition, an agreement on crude oil deliveries to commence this year has also been achieved,” it had said. Apart from the refinery, Essar also operates petrol pumps as well as coal bed methane (CBM) blocks.