Rosneft to use Venezuelian crude at Vadinar refinery in Gujarat

Calling Essar Oil’s Vadinar refinery as one of the most sophisticated refinery in the Asia-Pacific region, possessing a complex infrastructure, Rosneft said acquisition of the stake will enable Rosneft to enter the high-opportunity Indian market and boost the positions of the trading arm of the Company in the Asia Pacific region.

Rosneft to use Venezuelian crude at Vadinar refinery in Gujarat

Soon after inking an agreement to acquire Essar Oil’s 20 mtpa Vadinar refinery along with a consortium of international investors, Russian oil major Rosneft said it would use Venezuelan crude to supply to the refinery.

“Key synergies sources will be represented by the possibility to process heavy oil from Venezuela and cross-supplies of oil products to APR markets. This will allow raising the economic efficiency of the refinery (GRM), which since the begging of EOL’s financial year (started in April 2016) exceeded USD 10/bbl,” Rosneft said in a statement.

rosneft

Calling Essar Oil’s Vadinar refinery as one of the most sophisticated refinery in the Asia-Pacific region, possessing a complex infrastructure, Rosneft said acquisition of the stake will enable Rosneft to enter the high-opportunity Indian market and boost the positions of the trading arm of the Company in the Asia Pacific region.

rosneft

Key synergies sources will be represented by the possibility to process heavy oil from Venezuela and cross-supplies of oil products to APR markets. This will allow raising the economic efficiency of the refinery (GRM), which since the begging of EOL’s financial year (started in April 2016) exceeded USD 10/bbl.

“This is a significant milestone for the Company, Rosneft is entering one of the most promising and fast-growing world markets. At the same time, this project provides unique opportunities for synergies both with the existing assets of the Company and Rosneft’s future projects, and opens a big potential for expansion of its presence on the markets of other APR countries, such as Indonesia, Vietnam, the Philippines and Australia,” Igor Sechin, Rosneft’s CEO, in his comments on the deal said.

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Rosneft said the deal is being implemented with the assistance of VTB Capital, which acting as an exclusive financial advisor of EOL’s current shareholders.

 

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