Russia’s Rosneft buys 16.7% in Total’s refinery for $300 mln

ST. PETERSBURG, Jun 19 (PRIME) -- Russian oil major Rosneft has signed a contract to buy a 16.7% stake in a refinery located in the German city of Schwedt from French oil and gas major Total for U.S. $300 million, Rosneft’s CEO Igor Sechin told reporters and Total said in a statement on Friday.

“Market valuation of assessment of the shares taking into account the market conditions which reflect the current value. Negotiations were difficult, but they were effective. It will help us increase supplies and stabilize refinery operations, consolidate stakes,” Sechin said.

“The transaction is valued at $300 million excluding working capital and remains subject to customary approvals,” Total said in a statement.

Rosneft and Total agreed on the main terms of the contract in November 2014.

Other shareholders of the refinery include Netherlands-based Shell, which holds a 37.5% stake in the refinery, Italian oil and gas major Eni with an 8.33% stake and Germany-based Ruhr Oel GmbH, a 50% stake in which is owned by Rosneft, with a 37.5% stake.

Refinery PCK Raffinerie GmbH was founded in 1958 and launched in 1964 after the Druzhba mainline oil pipeline was constructed. Its current capacity stands at 12 million tonnes of primary oil annually.

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