Russian energy giant Rosneft and India's Essar Groupsigneda long-term contractfor oil supplies for the purpose of refining at the Vadinar refinery in India, Rosneft announcedon Wednesday.
Rosneft's chairman Igor Sechinand Shashi Ruia, the founder of India's Essar Group,signed the contract thatenvisages total supplies of 100 milliontons of crude oil over a period of tenyears, according to Rosneft's press release.
The document was signed in Ufa within the BRICS summit, in continuation of the agreementsreached in 2014 during the visit of the Russian PresidentVladimir Putin to India, press release said.
Vadinar is the second biggest refineryin Indiaand one of the world's top-20 refineries with a refining capacity of20 million tons of oil per year.It is also one of the ten most complex refineries in the world,Rosneft noted.
Rosneft said, with theagreement, it grants itself a secure market outlet of crude oil.
Moreover, Rosneft and Essar shareholders signed a Term Sheet with regard to Rosneft participation in the Vadinar refinery equity capital with a share of up to 49 percent. The principles laid down in the Term Sheetwill be reflected in final documents, which will be subject to corporate approval, press release said.
Rosneft said this will allow it to obtain a share in one of the biggest refineries in India and the Asia-Pacific region.
The
parties intend to significantly increase the refinery’s capacity to45
million tons per annum by the year 2020. The deal also includes a retail
chain of 1,600 stations located in India, which isplanned to increase
to 5,000within the next 2 years, Rosneft said.
(Anadolu Agency)
