Sunday, September 10, 2017

China Purchases 14% Of Rosneft From Qatar

By Zainab Calcuttawala

OIL PRICE - Sep 08, 2017,

China made a new move to strengthen its relationship with Russia this week by agreeing to buy a 14 percent stake in the oil and gas company Rosneft, according to a new report by the Associated Press.
The $9 billion purchase will transfer the Qatar Investment Authority’s 14.16 percent Rosneft stake to CEFC China Energy Company Ltd., Glencore said on Friday. China bought the shares at a 16 percent premium to the Rosneft share price over the past month. Final negotiations and regulatory approvals are needed before the exchange goes through, however.
“This deal intensifies the energy relationship between Russia and China. A direct stake in Rosneft will make CEFC China the main driver for the relationship of Rosneft with China, ahead of CNPC, Sinopec and Beijing Gas,” Wood Mackenzie senior analyst Christian Boermel said. “Rosneft keeps its customers close to its heart – buy a stake, get an oil supply agreement. CEFC China could soon take stakes in Rosneft projects, either in cash-intensive upstream projects, or in the downstream.”

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