Rosneft agrees to sell stake in Vostok Oil Project to Vitol and Mercantile & Maritime

AK&M 11 June 2021 16:34

Rosneft and a consortium of Vitol S.A. and Mercantile & Maritime Energy Pte. Ltd. have signed heads of terms for the sale of a 5% equity stake in OOO Vostok Oil, Rosneft informed.

The transaction is expected to close after the parties receive the required regulatory and corporate approvals.

The opportunity of commodities supply in two directions at once, to European and Asian markets, is a logistic advantage of Vostok Oil, the statement notes.

In 2020, Rosneft commenced full-scale development of the project's fields; a 10% stake in it was acquired by the large international trader Trafigura. Operations at the Vostok Oil Integrated Project have achieved an active preparatory phase: design and survey work is being performed for high-priority facilities, and experienced highly qualified EPC contractors have been selected for technologically complex facilities.

Rosneft is the leader of Russia's petroleum industry and the world's largest publicly traded petroleum company. The Company's main activities include prospecting and exploration of hydrocarbon deposits, oil, gas and gas condensate production, upstream offshore projects, crude processing, as well as marketing of oil, gas, and refinement products in Russia and abroad.

The company is on the list of strategic enterprises in Russia. Its principal main shareholder (40.4% of shares) is Rosneftegaz wholly owned by the Government of Russia, while BP owns 19.75% of shares, QH Oil Investments LLC holds 18.93% of shares, one share belongs to the Government represented by Russia's Federal Agency for State Property Management (Rosimushchestvo).

IFRS net profit attributable to Rosneft shareholders for 2019 increased by 29% to RUB 708 billion from RUB 549 billion a year earlier. Sales revenue and equity share in profits of associates and joint ventures went up 5.3% to RUB 8.676 trillion from RUB 8.238 trillion, EBITDA increased by 1.2% to RUB 2.105 trillion from RUB 2.081 trillion.