Essar will soon be completing the Rs 86 000 crore sale of Essar Oil's stake to Rosneft and the investment consortium led by Trafigura and UCP. Igor Sechin, the CEO of Rosneft, had also announced at the company’s AGM that the transaction can now be “considered as closed”. This paves the way for the culmination of the landmark deal, which is the largest foreign direct investment (FDI) in India.
Signed on 15 October 2016, the sale transaction was announced in the august presence of Narendra Modi, Honourable Prime Minister of India, and Vladimir Putin, Honourable President of the Russian Federation, at the BRICS Summit in Goa (India).
The all-cash deal encompasses Essar Oil’s 20 million t refinery at Vadinar in Gujarat, and its pan-India network of over 3500 retail outlets. The world-class refinery, which accounts for 9% of India’s total refining output, is supported by a 1010 MW captive power plant, and a 58 million t deep draft port that helps in importing crude and exporting finished products for the refinery.
Investing in Essar Oil, which operates one of the world’s most complex refineries and runs India’s largest private sector retail network, gives the new stakeholders a strong foothold in the Indian market that will witness robust demand growth for petroleum products in the long term. The growth for refined petroleum products in the Indian market for the next five years is expected to be in the 5 – 7% range.
Read the article online at: https://www.hydrocarbonengineering.com/refining/05072017/essar-to-complete-sale/