As part of the economic development plan for 2016, the Russian government is planning to partially privatize its flagship oil producer, Rosneft. Russia is hoping to get more than US$11 billion from the sale of a minority stake of Rosneft before the end of the year. This will help plug financial deficits in the Russian economy caused due to low crude prices. However, sanctions imposed on Moscow over its actions in Ukraine and the cautious approach of investors in investing money in Russia can prove to be detrimental for the Russian market. Added to this is the volatile nature of the commodity market. Rosneft is hoping to repeat the success it had a decade ago, when it managed to raise US$11 billion from its initial share offering.
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Onexim Group, one of Russia’s major private investment funds with a diversified investment portfolio in mining, financial services, real estate, media, utilities and technology, is in talks with UralChem to sell a stake in Uralkali, the biggest producer of potash fertilizer. Onexim and UralChem jointly control Uralkali and are awaiting approval of the sale from its partners. One of the options looked into is that Onexim sell a 20% stake to Uralkali. It is also seeking to raise US$ 4 billion from this deal.
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Two of the major oil suppliers to China; Saudi Arabia and Iran, are experiencing a decline in orders year-over-year. This phenomenon is due to Russia doubling its exports to China in April 2016, compared to the exports for the same period last year. About 52% year-over-year increase between the two countries accounted for a transfer of 4.81 million metric tonnes. In March, the exports by Russia to China was 4.65 million tonnes. Oil imports from Saudi Arabia declined by 22% to 4.12 million tonnes and that from Iran fell by 5.1% to 2.76 million tonnes during the same period. According to a report by the International Energy Agency (IEA), Saudi Arabia ceased to be the leading supplier of crude oil during the end of the last year. Alternatively supplies from Angola, China’s third major supplier, increased by 39% to 3.98 million tonnes in an April year-over-year analysis.
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Export of natural gas to non-CIS countries from Russia is expected to decrease by 0.8% year-on-year to 184 billion cubic meters in 2016, due to EU’s intention to decrease its dependence on gas from Russia. For 2016, the gas deliveries to Ukraine from Russia is estimated to be only around 11 billion cubic meters due to its current relations with Ukraine. According to government figures, the export of natural gas for 2017 is estimated to be 189.9 billion cubic meters and 191.4 billion cubic meters for 2018 and 2019. The conservative case provides for natural gas export of 184 billion cubic meters in 2016, 188.7 billion cubic meters in 2017, and 190 billion cubic meters in 2018. The average contracted gas prices for non-CIS countries will be $159.2 per 1,000 cubic meters in 2016, $167.2 per 1,000 cubic meters in 2017, $159.1 per 1,000 cubic meters in 2018, and $174.8 per 1,000 cubic meters in 2019.
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Armenia is expecting the Russian state-owned Rostekh Corporation to send proposals concerning the reactivation of Nairit Chemical Plant in Yerevan by mid-June. It is the oldest chemical plant in Armenia and produces chloroprene rubber and various grades of latexes, and co-products including caustic soda, hydrochloric acid, liquid chlorine, lime, sodium hypochlorite, lacquer ethynol, and carbinol. Initially, it was planned that RT-Khimkompozit Holding – part of Rostekh and a leading company in the field of polymer composites – will present its proposals before April 1, 2016. It is estimated that the reactivation of the plant will cost around $200 to $300 million.
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Russia and Saudi Arabia have been fighting for a market share in China ever since oil prices started their downward spiral in mid-2014. The battle has heated up now and teapot refineries could tip the balance. Although Saudi Arabia was the biggest oil supplier to China, Russia managed to take the top spot several times due to the so-called teapot refineries. This has forced the Saudis to target teapots on the spot market to regain lost market share, something that they never did earlier.
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Three major Indian oil companies, Indian Oil Corp, Oil India Ltd and Bharat Petro Resources Ltd (BPRL), are planning to finalize an energy deal with the Russian oil giant Rosneft to buy stakes in the Siberian oil fields. The Chief Executive of Rosneft, Igor Sechin, will visit Delhi on March 15-16 during which a sale purchase agreement is likely to be signed for a 29 percent stake in the Taas-Yuriakh oil field. Last year, Rosneft sold a 20 percent share in Taas-Yuriakh to BP for $750 million, and based on that valuation a 29 percent stake could be worth around $1 billion. India is the third biggest oil importer and has to import three quarters of its oil requirements. This proposed deal comes at a time when New Delhi is pushing to take advantage of the substantial fall in oil prices and acquire overseas energy assets.
Read Full News At: http://www.researz.com/indian-oil-companies-propose-enter-contract-rosneft