Rosneft buys stake in Indian refinery
MUMBAI, July 9, 2015 – Rosneft announced on Wednesday a 10-year oil supply contract to acquire a 49-percent of Essar Oil’s Vadinar refinery. The deal also stipulates that the Russian oil major would provide 100 million tonnes of oil to Essar Oil.
Rosneft is to provide Indian exploration and production company Essar Oil with five million tonnes by the end of 2015. This deal allows Essar Oil to have access to Rosneft’s crude oil while offering the Russian firm an entrance into the Indian refining market.
“The performance of the terms of the signed documents will have a substantial impact on the scale of economical cooperation between Russia and India. The goods turnover between two countries will grow more than 50 percent,” Rosneft’s CEO, Igor Sechin, said in a company statement on Wednesday.
The Vadinar refinery is located in Gujarat, India and is the country’s second largest refinery with a capacity of 20 million tonnes per year.
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