Consortium set for stake in Rosneft

CEFC China Energy Co. and Glencore/QIA have agreed to acquire a 14.16% stake in Russian state-controlled oil company Rosneft.

Offshore staff

SHANGHAI, China – CEFC China Energy Co. and Glencore/QIA have agreed to acquire a 14.16% stake in Russian state-controlled oil company Rosneft.

The transaction has preliminary approval from the National Development and Reform Commission of China, although completion remains subject to final negotiations and the receipt of regulatory approvals from relevant government authorities.

CEFC chairman Ye Jianming said: “We are delighted at the opportunity of becoming a strategic shareholder of the world’s largest public oil producer and to develop strategic cooperation with Rosneft across the board in exploration, refining, storage, logistics, and sales of the upstream oil and gas resources.

“The transaction will consolidate and elevate the position of CEFC China in the oil and gas sector with incremental 2P reserves of more than 20 Bbbl. CEFC China looks forward to further in-depth cooperation with Rosneft.”

Christian Boermel, senior analyst at Wood Mackenzie for Russia Upstream Oil & Gas, said: “A direct stake in Rosneft will make CEFC China the main driver for the relationship of Rosneft with China, ahead of CNPC, Sinopec, and Beijing Gas…

“CEFC China could soon take stakes in Rosneft projects, either in cash-intensive upstream projects, or in the downstream.”

09/11/2017

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