Rosneft Sells Vostok Oil Stake

Rosneft Sells Vostok Oil Stake
Rosneft has signed heads of terms for the transaction of a five percent stake in the capital of OOO Vostok Oil with a consortium of Vitol S.A. and Mercantile & Maritime Energy Pte. Ltd.

Rosneft revealed Thursday that it has signed heads of terms for the transaction of a five percent stake in the capital of OOO Vostok Oil with a consortium of Vitol S.A. and Mercantile & Maritime Energy Pte. Ltd.

The agreement confirms the consortium’s intention to acquire a stake in the Vostok Oil project and sets out the main terms of the transaction, Rosneft noted. The deal is expected to close after the parties receive the required regulatory and corporate approvals.

“The agreement is based on our successful long-term cooperation with Vitol and Mercantile & Maritime,” Rosneft’s chief executive officer, Igor Sechin, said in a company statement.

“The resource potential of the Vostok Oil project, the high quality of oil and its economic model make the project one of the most attractive targets for investment in the global energy industry, which is confirmed by the strong interest of large world companies in it and the estimates of leading investment banks,” he added.

“Definitely, the project is interesting to the companies focused on feedstock supply, trading, and logistics with an extensive client base and distribution channels around the world, those that consider the future need for ‘green’ oil supply. We intend to further strengthen our cooperation with Vitol and Mercantile & Maritime which includes the Vostok Oil project,” Sechin went on to say.

Last week, Rosneft revealed that it had signed 73 cooperation contracts worth a total of $8.6 billion (RUB 616.5 billion) at the XXIV St. Petersburg International Economic Forum. Of the 73 contracts, more than 50, totaling $7.7 billion (RUB 558.8 billion), were signed to implement the Vostok Oil project, Rosneft highlighted.

Contracts were said to be signed for the construction works of Vostok Oil’s first stage objects, power and aviation supply, servicing, supplies of equipment, production materials, special-purpose machinery, and pipe products.

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



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