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.”
READ MORE....
