Mercantile & Maritime, Vitol take stake in Vostok Oil Project
MOSCOW, June 11, 2021 – A consortium of Mercantile & Maritime Group and Vitol has signed a heads of terms with Rosneft to purchase a 5% stake in the authorised capital of Vostok Oil, one of Russia’s largest-scale production projects.
Rosneft, which announced the deal on Thursday, has been in discussions with various companies for stakes in the project, which it says is valuable for its potential to supply to markets in both the west and the east.
“Definitely, the project is interesting to the companies focused on feedstock supply, trading and logistics with an extensive client base and distribution channels around the world, those that consider the future need for ‘green’ oil supply,” Rosneft CEO Igor Sechin said in Thursday’s press release.
The project has been designed to meet stringent environmental standards in both the extraction and the shipping of oil. It is currently in the preparatory phase, with design and survey work ongoing and EPC contractor selection completed.
The parties expect the deal to close after regulatory approvals.
Singapore-based Mercantile & Maritime is an independent commodities trading business that is active across the Middle East, Europe and Asia. The company has been purchasing oil products from Rosneft for the last couple of years.
Vitol is a global energy and commodities company active in trading worldwide.