The government of India thought of making the oil giant

The government of India plans to start consultations on the issue of unification of 13 state-owned oil companies into a giant Corporation that can bypass the “Rosneft” by market capitalization, the newspaper writes The Economic Times citing sources.

According to interlocutors of the edition, the Ministry of oil plans to discuss a possible merger with all stakeholders, including be Association of the company. In the list of companies, which can be combined include the leading oil producer in the country Oil and Natural Gas Corporation (ONGC), oil refineries, Bharat Petroleum Corporation and Indian Oil Corporation, Hindustan Petroleum, GAIL, Mangalore Refinery and Petrochemicals (MRPL), Chennai Petroleum, Numaligarh Refinery and Oil India, lists the newspaper. The Ministry of oil refused to comment on this information.

Capitalization of these six companies together is $77 billion At market value and financial strength combined company will be able to compete with Rosneft (capitalization of $54.5 billion) and BP ($112 billion) and will be able to consider such proposals as the purchase of large stakes in Russian state-owned companies, the newspaper notes.

In June, the Agency Bloomberg with reference to sources wrote that the Russian government is preparing the sale of 19.5% Rosneft would prefer a collaborative deal with India and China. The Agency noted that representatives of China and India have publicly expressed interest in buying shares in Rosneft, but did not say that it is considering a joint deal. “We personally talks with Chinese and Indian companies do not store: us government the order did not give”, — said CEO of “Rosneft” Igor Sechin in an interview to “Russia 24”.

Another contender for participation in the privatization of Rosneft — CNPC. May 30, Chairman of the Board of Directors of CNPC Wang Yilin said in an interview with TV channel “Russia 24” that the company is interested to increase the share in “Rosneft” under certain conditions: “In the case of increasing the would like to have the right to participate in the management of the company, of course, in full accordance with the acquired shares. Again, we expect that the format of participation and the scope of authority will be reflected in the offer “Rosneft”. However, the government is instructed to “Rosneftegaz” to find a buyer who will agree to vote for the representatives of the Russian government in the selection of candidates to the Board of Directors of “Rosneft”.

“Rosneft” together with the Indian companies is developing the Vankor oil field. India’s ONGC Videsh in may 2016 bought 15% “Vankorneft” for $1.27 billion and received the right to increase its stake to 26%. In June at the St. Petersburg international economic forum Rosneft has signed a sales agreement for another 23.9% of the Indian consortium of companies Oil India, Indian Oil and Bharat Petroresources 23.9% for $2 billion. Now the transaction is subject to approval by the state authorities of both countries. After closing of all transactions in India will be available from Vankor to 11 million tons of oil a year, said the head of ONGC Videsh Narendra Verma.