Rosneft Sells Stake in Vostok Oil

Rosneft Sells Stake in Vostok Oil
The deal was approved at a meeting of the Rosneft Board of Directors.

Rosneft has revealed that it has closed a deal to sell a five percent interest in the authorized capital of Vostok Oil LLC to a consortium of Vitol S.A. and Mercantile & Maritime Energy Pte. Ltd.

The deal was approved at a meeting of the Rosneft Board of Directors. The value of the transaction was not disclosed by Rosneft.  

Low unit lifting costs and a low carbon footprint make Vostok Oil one of the most promising oil production projects in the world, Rosneft highlights on its website. The resource base of the project is said to exceed six billion tons of premium-quality sweet crude with a record low sulfur content of 0.01-0.04 percent.

By 2030, oil production at Vostok Oil is planned to be around 100 million tons, according to Rosneft, which noted that the project has a logistical advantage of supplying raw products produced at its fields in two directions at once - to European and Asian markets.

“We are glad that consortium of Vitol and Mercantile & Maritime Energy has joined our flagship project,” Rosneft Chief Executive Officer Igor Sechin said in a company statement.

“Vostok Oil has a sustainable economic model, which received positive assessments of international experts. Logistical advantages, vast resource potential, and high quality of oil, make Vostok Oil one of the most attractive investment projects in the global energy sector,” he added in the statement.

“This fact is confirmed by world’s leading traders Trafigura and Vitol participating in the project, which will give them access to ‘green barrels’ of Vostok Oil. The company continues its active work towards implementation of the Vostok Oil Project,” Sechin went on to say.

Back in June, Rosneft revealed that it and the consortium of Vitol S.A. and Mercantile & Maritime Energy Pte. Ltd. signed heads of terms for a deal providing the sale of a five percent stake in the authorized capital of Vostok Oil. At the end of 2020, Trafigura acquired a 10 percent stake in Vostok Oil.

The Vostok Oil project comprises 52 license areas with 13 oil and gas fields located within their boundaries. As part of the XXIV St. Petersburg International Economic Forum, Vostok Oil and Inter RAO Engineering concluded survey and design contracts to underpin the construction of Train 1 power generation facilities for the Vostok Oil project, Rosneft announced in June 2021.

Rosneft is the leader of the Russian oil industry and the largest publicly traded oil company in the world, in terms of production volumes among companies listed on Western stock exchanges, the company notes on its website. Its share in global oil production is six percent, Rosneft’s website shows.

To contact the author, email andreas.exarheas@rigzone.com


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