Glencore, Qatar in final-stage negotiations to buy 19.5% stake in Rosneft
08 Dec 2016 14:18 GMT
|Transaction expected to close in mid-December, says Glencore.|
| Glencore, the owner of bunker supplier Chemoil, has confirmed that it is in final-stage negotiations regarding a transaction involving the acquisition, as part of a consortium with the Qatar Investment Authority, of a 19.5 percent interest in the issued share capital of Rosneft for EUR 10.2 billion.|
Under the proposed arrangements, Glencore would commit EUR 300 million in equity, with the balance of the consideration for the acquisition of the shares to be provided by QIA and by non-recourse bank financing.
According to Switzerland-headquartered Glencore, the other key terms of the proposed transaction for the company are:
- A new five-year offtake agreement with Rosneft representing an additional 220,000 barrels per day for the Glencore Marketing business.
- Additional opportunities, through a strategic partnership for further cooperation, including infrastructure, logistics and global trading.
- Other than the economic exposure represented by the EUR 300 million in equity (amounting to an indirect equity interest in Rosneft of around 0.54%), Glencore says it would not have any economic exposure to its interests in the shares.
- Limited liability structure fully ring-fenced and non-recourse to Glencore - apart from its EUR 300 million equity contribution and the provision of certain guarantees.
Once the transaction is entered into, it would be expected to close in mid-December, Glencore says.
Established in 1981, Chemoil - a wholly owned subsidiary of Glencore - is one of the world's leading marine fuel suppliers.
Chemoil was named Singapore's leading bunker supplier by volume in 2015, dethroning BP as the top seller at the world's biggest bunker port, according to data released by the Maritime and Port Authority (MPA).
Earlier this year, Chemoil commenced physical bunker fuel supply operations at Australia's Port Kembla, New South Wales, in addition to Newcastle, Port Botany and Eden. The company also began carrying out deliveries in Brisbane in June.
Rosneft's bunker business
Rosneft's bunkering business is carried out by RN-Bunker and Rosneft Marine UK Ltd. Via these companies, Rosneft carries out bunker deliveries in key ports across Russia and is able to arrange supplies outside Russia also.