Russian oil major Rosneft is taking a 49% stake in Essar Oil’s Vadinar refinery, with plans to raise capacity and create a retail chain of stations, the Russian oil major announced late on Wednesday.
The two companies also signed a long-term contract for supplies for the purpose of refining at the Vadinar facility, Rosneft announced on its website on Wednesday.
The contract envisages supply of 100 million tonnes of crude oil for 10 years.
Rosneft and Essar signed a term sheet with regard to Rosneft’s participation in the Vadinar facility equity capital, with a share of up to 49%.
The refining capacity of Vadinar is 20 million tonnes per annum (mtpa). The companies also plan to raise the capacity to 45 mtpa by 2020.
The deal also includes a retail chain of 1,600 refuelling stations in India, with plans to raise the number to 5,000 in the next two years.
Separately, Bloomberg reported that Essar Oil received National Stock Exchange of India consent to delist its shares and is awaiting approval from BSE, citing people familiar with the matter.
The company is expecting BSE permission this week, said the people, who asked not to be identified as the matter is private, the agency reported.