PRESS: Rosneft may set up JV with IOGC, Chinese CEFC

MOSCOW, Aug 18 (PRIME) -- Russia’s oil major Rosneft may establish a joint venture with Chinese CEFC China Energy and Independent Oil and Gas Company (IOGC) of Rosneft’s former CEO Eduard Khudainatov, Vedomosti daily reported on Friday citing sources.

The joint venture will obtain part of Rosneft’s retail business and IOGC’s assets. CEFC will invest money, the newspaper said citing two Russian officials and a source close to a possible deal.

Independent Oil and Gas Company held by Bermudas-based Alliance Oil owns facilities in Russia’s Far East, including a large Khabarovsk refinery with a throughput capacity of 6 million tonnes of oil annually, a gas station network, 12 producing fields and three sea terminals. In 2016, the company made 2.3 million tonnes of crude.

A source said the deal will be complex and may involve Rosneft’s shares. CEFC China Energy was reportedly offered to acquire a stake in QHG Oil, the owner of 19.5% in Rosneft.

Reuters news agency reported on Thursday that Rosneft may announce a deal to sell a stake in its retail business to Chinese CEFC in September. In July, the two companies signed a strategic cooperation agreement envisaging an option that CEFC could buy a stake in Rosneft’s retail business.

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