Russia’s Rosneft Buys Into French Oil Refinery

Posted: November 29, 2014 in Econ 101, Technology and Energy

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Total and Rosneft draw closer together over refinery deal

By Paddy Harris

28th November 2014

Total and Rosneft have signed a term sheet that envisages the main terms and conditions of the purchase of a 16.67 per cent share in a refinery located in Schwedt, Germany (PCK Raffinerie GmbH)

Total and Rosneft have signed a term sheet that envisages the main terms and conditions of the purchase of a 16.67 per cent share in a refinery located in Schwedt, Germany (PCK Raffinerie GmbH)

The deal represents a deepening of the energy partnership between Russia and Europe based on the effectiveness of supplying a refinery located along the Druzhba pipeline

“This agreement is reflective of the level of trust, long-term commitment and mutual benefit in the relationships between Total and Rosneft,” said Sechin.

The document was signed in Sochi by the head of Rosneft Igor Sechin and chief executive officer of Total Patrick Pouyanne.

“It proves the effectiveness of the European-Russian energy partnership in that it delivers added value to all companies and countries involved,” added Sechin.

“As for Rosneft, this deal means a strengthening of its position in one of Europe’s most efficient and effective refineries and an opportunity to serve the end-customers in its most important market. Once the deal is closed, Rosneft together with ROG will manage close to 55% of the refinery’s ownership.”

The deal represents a deepening of the energy partnership between Russia and Europe based on the effectiveness of supplying a refinery located along the Druzhba pipeline.

Total and Rosneft are further agreeing on an off-take agreement to supply Total’s retail and wholesale customers securing stable supply to the premium Berlin and surrounding areas, markets and customers supplied by pipeline from the refinery.

SOURCE: http://www.oilandgastechnology.net/downstream-news/total-rosneft-draw-closer-together-over-refinery-deal

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