Sechin will discuss in Mumbai buy 49% of Indian refineries

That Sechin on Wednesday went to Mumbai for the next round of negotiations with the owners of Essar Group brothers Shashi and Rabbi Ruia, told two sources in “Rosneft”.

The fact of the visit and subject of the negotiations confirmed the official representative of “Rosneft” Mikhail Leontiev, adding that negotiations are “working character”, because “Rosneft” from the Essar Group has an agreement of intent for the acquisition of a stake in the plant, and plans remain relevant. The more detailed explanation, he refused. Essar did not respond to a request .

In the summer of 2015 Rosneft and Essar Group have signed a ten-year supply contract in India 100 million tons of Russian oil, as well as the basic terms of the transaction on purchase “Rosneft” 49% in the second largest oil refinery in India located in Vadinar. The plant also owns a network of gas stations out of 1600 stations. The asset can be paid either with money or oil, Sechin said then. The partners wanted to increase the plant’s capacity from 30 million to 45 million tons by 2020. Previously, the parties did not rule out cooperation in joint production projects in third countries and participation in shelf projects of “Rosneft” on the part of Essar Oil.

In the fall of 2015 Indian media reported that “Rosneft” offered about $2.4 billion for 49% of Essar Oil. But its owners would like to get about $3 billion In alternative buyers by the source Agency Bloomberg was then called the Saudi oil company Saudi Aramco, noting that the two sides met in January 2016 at the economic forum in Davos. But at that time Rosneft was the exclusive right to negotiate with Essar, said a source close to the Russian company. Previously Rosneft planned to complete due diligence of the assets of Essar Group in March.

One of the interlocutors in “Rosneft” reported that the parties still cannot agree on the amount of the transaction. Due to the fall in oil prices (from the autumn of 2015 fell by about a third, to $36.8 per barrel) the Russian company believes that the earlier proposed amount ($2.4 billion) is “too high,” he says.