Essar Mauritius inks agreement concerning Rosneft’s 49% stake in India’s EssarOil
Essar Oil & Gas Ltd/ Essar Energy Holdings Ltd (Essar), two companies incorporated and managed in Mauritius, signed a non-binding agreement in principle with OJSC Rosneft Oil Company, Russia (Rosneft) concerning the participation of Rosneft in the capital of EssarOil Limited (EssarOil) to the tune of 49%.
Essar Oil & Gas Ltd / Essar Energy Holdings Limited (Essar), two companies incorporated and managed in Mauritius, signed a non binding agreement in principle with OJSC Rosneft Oil Company, Russia (Rosneft) concerning the participation of Rosneft in the capital of EssarOil Limited (EssarOil) of 49%.
This preliminarypactsigned in Ufa, Russia, is contingent on numerous factors, in particular, the evaluation of the price of the transaction, the execution of documents relative to the definitive transaction and the receipt of the necessary authorizations.
The necessary information will be published according to applicable laws when definitive measures related to the above-mentioned transaction will be undertaken.
An agreement for the supply of crude oil over a ten-year period was also signed between EssarOil and Rosneft. The signing of this agreement follows the approval in December 2014 of themain aspects of collaboration between both companies.
EssarOil operates the second most important refinery in India and the company mainly meets its crude oil needs through imports. The agreement securing the long-term supply of this product from an integrated oil company such as Rosneft will allow EssarOil to diversify its sources of supply, to spread its geographical market outreach and to strengthen its service delivery.
This contract will assure the supply of 10 million tons of crude oil to Essar’s refinery over the next ten years. Adequate operating margins were planned to allow the refinery to benefit from opportunities on the world oil market.
Essar has a strategic presence in Mauritius for over 20 years. Besides the oil major also have investments in Asia, in Europe and in Africa.
Essar directors Baboo R Gujadhur and Rajkamal Taposeea announced their satisfaction with the signing of these agreements and affirmed their support for the strategic partnership with Rosneft.