BENGALURU: Russian oil giant Rosneft, the company which recently took over Essar Oil, will be tapping into the Indian retail fuel market, Petroleum Minister Dharmendra Pradhan said on Sunday.
Pradhan was addressing reporters after inaugurating City Gas Distribution (CGD) Project. When asked about the size of investment to be made by Rosneft and Essar to tap the fuel retailing market, Pradhan said both companies had invested $13 billion in Indian market in the last fiscal. “This was one of the biggest deals in the oil industry in the world,” he added.
In the beginning of the second quarter, BP and RIL had announced more than $6 billion investment in India, Pradhan said. The Rosneft-Essar deal is expected to be completed by the June-end 2017. The $12.9 billion deal is the largest acquisition of an Indian firm by a foreign firm. Through this deal, Rosneft will get a 49 per cent stake in Essar, which would help the firm pursue its global expansion plans.
Rosneft is going big on expansion. The company announced on Sunday that it had found its first oil field in the Laptev Sea in the eastern Arctic, Rosneft and its partners plan to invest 480 billion rubles ($8.4 billion) in developing Russia’s offshore energy industry in the next five years.
Meanwhile, the CGD project would be implemented by GAIL Gas Limited, with an investment of `6,283 crore, Pradhan said. The project would cover 4,395 sq km in urban and rural Bengaluru, broadly covering eight sectors — Nelamangala, Dodaballapur, Devanahalli, Hosakote, Bengaluru East, Bengaluru North, Bengaluru South and Anekal, he said. The project aims to provide environment friendly energy to 106.12 lakh residents of Bengaluru by supplying Piped Natural Gas.