OIL & GAS

Rosneft looking at bidding for BPCL, inks first oil contract with India

Rosneft is interested in bidding for BPCL when the government puts on the block India’s second-largest public sector oil refining and fuel marketing company, head of Russia’s largest oil producer Igor Sechin informed oil minister Dharmendra Pradhan on Thursday ahead of signing a crude supply contract with IndianOil — the first term contract for Russian oil by an Indian refiner.

Sources said Sechin first met Pradhan over breakfast and followed it up with a delegation-level talks to discuss proposed investments by Indian oil companies in Russia’s Far East and propsects for Rosneft in India. It was during the course of these talks, Sechin outlined Rosneft’s interest in bidding for BPCL.

The government on November 20 had decided to privatise BPCL by selling the government’s entire 52.98% along with with management control. Rosneft’s interest in BPCL will boost the government’s efforts to bring foreign investment. Oil ministry officials maintain that Saudi Aramco of Saudi Arabia and ADNOC of UAE have already shown their interest in BPCL.

Rosneft holds majority in Nayara Energy, formerly Essar Oil, and a 20-million tonne refinery at Vadianr in Gujarat. A Rosneft-led consortium had acquired Essar Oil for nearly $13 billion in 2017. The acquisition of Essar refinery added to Rosneft’s capacity to consume its portfolio of heavy crudes, especially from Venezuela.

BPCL will give access to a readymade marketing network for refined products and boost refining capacity in India, the world’s fastest-growing energy market, and add to the refining .

Source
Times of India
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