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Oil and gas firm Rosneft on Monday confirmed that it has successfully closed a transaction for the acquisition of 49.13 percent of shares of Essar Oil Ltd (EOL) from Essar Energy Holdings Ltd (EOL) and its affiliates.

Trafigura and United Capital Partners (UCP) also announced the closure of their acquisition of a separate 49.13 percent share of EOL.

EOL is engaged in the exploration and production of oil and natural gas, refining of crude oil, and marketing of petroleum products. It has a network of more than 3,500 fuel stations across India.

EOL operates a refinery in Vadinar, located in the north-west Indian state of Gujarat, which has a throughput capacity of 20 million metric tonnes per annum (mmta), or 405,000 barrels per stream day (bpsd), and produces transport fuels, middle distillates and liquefied petroleum gas (LPG).

Rosneft noted that Vadinar "possesses high feedstock flexibility, with heavy grades from Latin America accounting for more than half of all feedstock processed. The refinery's configuration is one of the most technologically complicated in the Asia-Pacific region".

Rosneft explained that, as part of the deal, it had also gained access to Vadinar's integrated oil terminal (from Essar Ports Ltd), and power station (from Essar Power Ltd) as part of the transaction.

Rosneft said Vadinar's infrastructure - a refinery, deepwater port, storage terminals and power station - as well as Rosneft's shares in upstream projects in Venezuela will provide it with "significant operational synergies and help improve the refinery's economics".

"The closing of the acquisition enables Rosneft to enter one of the world's fastest growing markets (29.8% cumulative GDP growth in India in 2013-2016)," the Russian firm added.

Commenting on the closing of the transaction, Rosneft's Chief Executive Officer, Igor Sechin, said: "The Company has entered the high-potential and fast-growing Asia Pacific market. The acquisition of the stake in the Vadinar refinery creates unique opportunities of synergies with existing Rosneft-owned assets and will help improve efficiency of supply to other countries within the region."

Image: Vadinar refinery in Gujarat, India.