![]() ![]() The Nayara sale marks the end of a hard-won relationship that Trafigura had established with Rosneft, which had made the trading house one of the biggest marketers of its crude prior to Russia’s full-scale invasion of Ukraine last year. ![]() People familiar with the sale said Trafigura got book value for its stake, which was carried in its last annual report at $165.9mn and classified as “held for sale”, with a possible disposal to Mareterra, then known as Genera, first reported in 2021. ![]() The Swiss-headquartered commodity trader disposed of its 24.5 per cent interest in Nayara Energy Limited - which operates one of the largest refineries in India and more than 6,000 petrol stations - to Hara Capital Sarl, a subsidiary of Italian energy investment company Mareterra Group Holding. “It is an issue of risk versus reward, and for some people, the maths are still not working,” explained one of the sources.Trafigura has sold its stake in an Indian oil refinery joint venture with Russia’s Rosneft, severing the final tie between the commodity house and Moscow’s state-owned oil champion. Trading sources said that large traders had shown interest in securing volumes from Russia but exercised caution because of Western sanctions, which forbade long-term funding of Rosneft, and waning interest from banks in funding Arctic deposits. According to the trader’s spokesperson, the acquisition “builds on the longstanding commercial relationship between Trafigura and Rosneft, providing access to long-term offtake supply of crude oil including from Vostok Oil.” Thus, Trafigura is likely to remain the largest exporter of Rosneft fuels for the next five years. Reuters’ sources stated that the trading house would get an extension of its long-term deal to lift oil and products in exchange. ![]() Swiss-based Trafigura has already agreed to purchase a 10% stake in the project. Vostok Oil will cost dozens of billions of dollars to develop and is valued by Rosneft at $70-150 billion, depending on the price of oil and cost of capital, according to three sources close to talks. However, the project will require significant investments in new pipelines, roads and other infrastructure in East Siberia and the Arctic. The oil is supposed to be shipped to Asia via the Northern Sea Route. Earlier, Rosneft stated that the deposit could produce 1% of global crude later this decade. Vostok Oil is one of Russia’s biggest oil projects with resources estimated at 44 billion barrels, which is enough to supply the world for more than a year. Rosneft attempted to attract local investors from Japan, China and India in 2019, but negotiations stalled after the oil price collapse of 2020. According to unnamed sources, Rosneft has offered the trading houses to invest in Vostok Oil in exchange for immediate contracts for crude and refined products. Although trading houses usually avoid direct investment in production, Rosneft’s proposal may attract them by giving access to a long-term source of supply to the growing Asian market.Īt the moment, Rosneft is in discussions with such major traders as Vitol, Glencore and Gunvor. Russian state oil major Rosneft is courting investments from global trading houses to help develop the company’s Vostok Oil project in the Arctic, states Reuters citing industry sources. After selling a 10% stake in Vostok Oil project to Swiss commodity trader Trafigura last month, Rosneft continues to seek partners between key trading houses, as other potential investors seem to drop out amid the current oil market downturn. ![]()
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