Reuters revealed that the Saudi state oil company Saudi Aramco tried to disrupt the acquisition by Rosneft of a share in the Indian Essar Oil.
According to well-informed Agency sources, the deal was only thanks to the personal intervention of Russian President Vladimir Putin and Prime Minister of India Narendra modi.
Rosneft and its partners, however, had to double the original estimate Essar to 12.9 billion dollars. According to other sources, the Agency, Rosneft just managed to kill the proposal Saudi Aramco.
This fact, according to Reuters indicates that new oil conflict between Russia and Saudi Arabia, which may have an impact on the impending agreement on the production of oil and change in oil prices.
In Essar has denied the information on the key role of leaders of the two countries at the conclusion of the transaction, stating that the Russian proposal turned out to be more attractive. In “Rosneft” and Aramco declined to comment.
Press Secretary of the President of Russia Dmitry Peskov, the Kremlin’s meddling in the deal denies.
“Naturally, we protect the interests of our companies. Of course, we’re lobbying their interests, especially in matters of such large transactions,” – said Peskov, noting that in this particular case with Essar “no orders from the Kremlin was not.”
“Rosneft”, VTB and Trafigura entered into an agreement to acquire the Indian assets of Essar Oil Limited 15 November 2016. According to Reuters, the head of “Rosneft” Igor Sechin held talks on the purchase of 49% Essar refineries with its owners, brothers Ravi and Shashi Ruia, 2014. A preliminary agreement was signed in July of 2015.
We are talking about buying an oil refinery, infrastructure and distribution assets. Rosneft bought 49% in Essar Oil Limited (EOL) Essar Energy Holdings Limited and its affiliated companies.
“Rosneft” becomes one of the most modern refineries in Asia and the Pacific in Vadinar. Business EOL also includes a large network of gas stations in India, with 2.7 thousand stations operating under the brand Essar.