Russian oil giant PJSC Rosneft Oil Company has initiated preliminary discussions with Reliance Industries (RIL) to sell its 49.13 percent of Nayara Energy, which works with 20 million tonnes per year, oil and 6.750 petrol pumps in India, according to India. Potential acquisition can position a reliance as a top refining of oil in India, surpassing state -owned Indian oil corporation (IOC) and significantly strengthening its presence in the country’s retail market.
However, negotiations remain at an early stage and there is no certainty that they will culminate in agreement, as the differences in assessment continue, three sources say direct knowledge of the issue.
Rosneft directors have visited India at least three times over the past year, holding talks in cities, including Ahmedabad and Mumbai with potential investors.
Western sanctions have hampered Rosneft’s possibility of returning earnings from India, prompting her decision to exit Naara. An appropriate buyer, sources say, will ideally have significant inflows of income abroad, enabling fast cross -border payments for the share.
“As a policy, we do not comment on media and rumors speculation. Our company estimates different opportunities on a current basis. We have done and will continue to make the necessary disclosures in accordance with our obligations under the India Securities Exchange Board (lists for commitments and requirements).
Rosneft received Esar Oil, later renamed Naara Energy, in 2017 by $ 12.9 billion, but fought to extract full financial benefits for sanctions. The Russian Major decided to get out of the most in 2024, with the UCP investment group also selling its 24.5 percent shares. The other largest stakeholders of Naara, the Trafigar group, has 24.5 percent and can come out if the deal comes true, sources said.
Rosneft and the UCP offered their stakes to Reliance, Adani Group, Saudi Aramco and the ONGC/IOC combination, but the $ 20 billion value was considered excessive than most. Adani has decided, citing concerns about assessment and existing obligations with the total funds that limit its investments in fossil fuels of natural gas.
Saudi Aramco remains a serious candidate, demanding downside in India, although he thinks too much of a steep price of $ 20 billion.
The acquisition of Naara will give Reliance, which already operates 68.2 million tonnes of refined capacity in Jamamamagar, a total capacity exceeding 80.8 million tonnes of IOC and a stronger fuel retail basis.
The ONGC and IOC value Naara’s marketing network of no more than $ 2.5-3 billion and its refinery alike. For the reliance, only the marketing network may be worth about $ 5.5 billion, with the refinery synergies potentially adding $ 5 billion in value, sources added.
Rosneft reportedly reduced his estimate to $ 17 billion, but this remains over what many potential buyers are willing to pay. An official agreement has not been reached, and Rosneft has not issued an official statement confirming the sale.
(With bird entrances)
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