Oil and Gas, Trafigura
In March 2017 Rosneft might close a deal to buy a 49% stake in India's Essar Oil, foreign media reported citing the company's representatives on February 21, 2017.
Trafigura, the third largest energy trader in the world, in November 2016 started to buy gas in Europe and sell it in the Ukraine.
Rosneft, the largest state-owned oil company in Russia, expects to complete the transaction for the purchase of the Indian oil company Essar Oil in a few weeks, according to Russian media quoted th
Trafigura is negotiating on the purchase of the minority stake in the Indian oil processing company Essar Oil. Rosneft also plans to purchase a stake in it.
Trafigura is interested in the purchase of at least 15% of Essar.
The owners of Essar plan to sign the deal by the next month.
The owners of Essar would like to sign up to 30% of Essar to the trader.
As a part of the deal Trafigura might also obtain stake in more than 2,000 fuel stations of Essar, energy station and port Vadinar.
Essar holds the second largest oil refinery plant in India, the processing capacity of which is 20 mln tons a year, complexity index is 11.8 that is one of the highest in the world. The Vadinar oil refinery is able to process heavy sorts of oil, has the access to the deep water port that can accept VLCC tankers of high capacity.
The Dutch commodities trader Trafigura has expanded its cooperation with Rosneft. Last week it became known that an agreement to increase the volume of oil that Trafigura would buy from the largest Russian oil company was signed. The strengthening of the trade ties between the two companies comes amid the sanctions, imposed by the West against the Russian oil and gas companies, including Rosneft. Many Western companies scale down their activities in Russia because of the sanctions. In contrast, Trafigura gains momentum of the trading, buying more raw materials from Rosneft.
Audaces fortuna juvat (Lat.) - Fortune favors the brave
In the period from January to May, commodity trader Trafigura acquired 3.8 million tons of oil from Rosneft. This is reported by Argus Media. Thus, Trafigura became the largest foreign partner of Rosneft in the first five months of 2015. For comparison, according to Argus Media, in the same period Rosneft sold the nearest pursuer of Trafigura - Swiss Glencore – 3.2 million tons. Shell received 1.9 million tons, Vitol – 1.74 million, Gunvor - 890 thousand and BP - 180 thousand tons.
According to Argus Media, based on information of Transneft, in the first five months of this year, Rosneft exported 38.8 million tons of raw materials. 18 million tons of them - by sea. Thus, the Trafigura’s share in total exports of Rosneft is about 10%.
A representative of Rosneft declined to comment on RBC data on export deliveries. Trafigura’s representative Victoria Dis refused to disclose details of the transactions with Rosneft. She confined herself to a refer to Trafigura’s report for the period from October 2014 to March 2015. The company stated in it that its access to Russian oil increased from 2013, when its division was opened in Moscow.
In spring of 2015, the mass media wrote about the growth of the oil purchases from Rosneft by Trafigura. The success of the trader was caused by features of its contracts with Rosneft, which actually allows it to lend Rosneft without violating Western sanctions.
Oil trader Trafigura (the Netherlands) became the largest exporter of Russian oil. In April the company has exported nearly 9 million barrels of oil, the total price of which is more than 500 million dollars.
In May, Dutch company exports continued at a similar level.
Dutch oil trader Trafigura has become the largest exporter of Russian oil, the Financial Times writes.
In April, Trafigura, which works with Rosneft, exported almost 9 million barrels of oil, the total cost of which exceeds $500 million, the edition reports, and now Trafigura in terms of exports got ahead of its main competitors - Swiss Glencore and Swiss-Dutch Vitol.
Trader will provide the company with prepayment in hard currency.
The Swiss trader Trafigura, who from April, according to unofficial data, will buy about 1 million tons of oil per month from the oil company, can become the largest trader of "Rosneft". According to "the Kommersant", the contract provides for advance payments, and under normal conditions for such contracts "Rosneft" can get almost $ 1 billion from the trader for the next six months. Cut out due to the sanctions from Western funding "Rosneft" needs funds to pay for off its debts.
The Swiss trader Trafigura is in talks with "Rosneft" to increase its purchases of crude oil from the oil company. According to Reuters, in April trader will start to export more than 1 million tons of "Rosneft" oil a month - nearly six times more than what Trafigura buys now. A source of "the Kommersant" in the market confirms this information, but adds that currently the contract is not concluded, the negotiations continue and the final volume of deliveries for the trader and delivery terms are not defined. "Rosneft" and Trafigura do not comment on the situation.
The state-owned company can sell some its petrol stations to the trader.
"Rosneft" continues to seek a buyer for more than 80 of its petrol stations in Central Russia, which it should get rid of as prescribed by the Federal Antimonopoly Service (FAS). As "the Kommersant" is informed, a Swiss trader Trafigura could be a possible buyer, which has long-standing partnerships with "Rosneft". "Rosneft" has tendered these stations, but other VIOC and local entrepreneurs showed little interest.
"Rosneft" is negotiating with the Swiss trader Trafigura for the sale of the gas stations in the Tambov, Saratov, Samara, Orel, Smolensk and Kostroma regions, sources familiar with the progress told "the Kommersant". FAS ordered the state-owned companies to get out of the retail business, as after the purchase of TNK-BP the share of "Rosneft" in a segment of fuel sales in these regions exceeded 50%. " "Rosneft" still has 85-90 gas stations left, the company would like to sell all to one big buyer, and its partnership with Trafigura is a good opportunity", - one of "the Kommersant" interlocutors stated. "Rosneft" and Trafigura declined to comment.