Rosneft makes acquisitions at home and in India.
State-owned Rosneft has spent 329.69bn roubles ($5.30bn) on a controlling stake in Bashneft, Russia's fastest growing oil company. Part of the Russian government privatisation push, the move beat an unidentified bidder for the company which produces 400,000 barrels per day.
President Putin said that Rosneft used its own funds to buy the Bashneft stake, where 25% is owned by internal republic of Bashkortostan. It is unclear if Rosneft will buy that stake later, too.
Rosneft buys 49% of Essar Oil Image: Essar |
Meanwhile Russia's oil major is also set to acquire India’s Essar Oil in a USD12-13bn deal, including USD4.5bn in assumed debt.
Essar Oil, which is part of a conglomerate controlled by the Ruias brothers, has been facing pressure from creditors to reduce debt which is currently estimated at more than USD14bn.
The Ruias brothers and other minority shareholders will retain the remaining stake in their company.