Essar Oil, oil and gas company based out of Gujarat, India has signed a landmark deal to sell 98 percent stake to a group of investors for about USD 12.9 billion (approx. INR 85,000 crore).
Russia’s Rosneft, commodity trading firm Trafigura and private investment group United Capital Partners are the buyers of the stakes that will pay about USD 3.5 billion each.
The agency that a refinery and port owned by Essar Oil were worth around $10 billion and $2.9 billion, said Igor Sechin, chief executive, Rosneft.
Essar Group will be able to slash its huge debt, that is estimated at about Rs. 88,000 crore with the new stake deal.
India’s second largest single site refinery is owned by Essar Oil at Vadinar, Gujarat, with a capacity of 405,000 barrels or 20 MMTPA per day.
The Essar Group has presence in steel and ports, in addition to oil and gas led by Prashant S Ruia.
Essar Group has about 2,500 branded oil retail outlets across India, in addition to the 2,600 that are in various stages of commissioning, according to the company’s website.
Besides, the company has offshore and onshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves and resources.
Essar Oil sells 98% stake worth USD 12.9 billion in a deal
