As per terms of the agreement, Rosneft has purchased 49.13 % stake, while a consortium of Trafigura and UCP have purchased 49.13% interest in EOL.
The acquired business enables Rosneft to enter into the high-premium markets of the Asia Pacific region and south-east Asia.
The acquisition allowed Rosneft to acquire a stake in Vadinar refinery located in the state of Gujarat. The refinery is claimed to have access to a deep-water port capable of receiving super large very large crude carriers (VLCC) class tankers.
Vadinar refinery, with a current throughput capacity of 20 mmta, is said to produce 9% of India’s total refining output.
EOL operates around 3,500 Essar-branded fuel stations across India.
Rosneft CEO Igor Sechin said: “This day marks the beginning of a new chapter for EOL. Together with our partners we intend to support the company to significantly improve its financial performance and, in the medium term, adopt an asset development strategy.
“The closing of the deal is a remarkable achievement for Rosneft too: the Company has entered the high-potential and fast-growing Asia Pacific market.”
Essar founder Shashi Ruia said: “For Essar, the closure of this landmark transaction ushers in a new phase of growth across our portfolio of businesses that hold great promise in India’s enduring development story.”
Image: The Essar Oil’s Vadinar refinery in Gujarat, India. Photo: courtesy of Abhisek Sarda/Wikipedia.