Russia’s Rosneft acquire 49% stake in Essar Oil [ Current Affairs ]

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About Rosneft: Rosneft is an united oil company majority owned by the Government of Russia. Rosneft’s headquarter is in Moscow’s Balchug district near the Kremlin, across the Moskva River.

  • After purchasing assets of former oil giant Yukos at state-run auctions, Rosneft became Russia’s chief removal and Refinement Company of Oil.
  • In March 2013, Rosneft became the largest publicly traded oil company, after buying TNK-BP ( TNK-BP stands for Tyumenskaya Neftyanaya Kompaniya, Tyumen Oil Company was a major vertically united Russian oil company headquartered in Moscow.).

About agreement:

  • Rosneft signed strategic agreement with Shashi Ruia’s Essar Oil to acquire its 49 percent.
  • They both companies also agreed investigation and production of hydrocarbon in agreement.
  • As per the agreement Rosneft will get a prize in 1,600 retail chain stations of Essar Oil and they has planned to increase it to 5,000 within the next two years.
  • It has also agreed to deliver 100 million tonnes of crude oil over next ten years to Essar Oil.

About Essar Oil:

  • Essar Oil is an India-based company.
  • Its work is exploration and production of oil and natural gas, refining of crude oil, and marketing of petroleum products.
  • It is a part of the Essar Group based in Mumbai. It operates a major refinery in Vadinar, Gujarat, India, which made it the second largest non-state refiner in India in 2009.
  • It has capacity of 20 million tonne per annum and stands amongst the highest globally.

- Published on: August 3, 2015