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Europe: Russia's Rosneft closes deal for PDVSA's 50% stake in Ruhr Oel

https://www.chemnet.com   May 06,2011 Platts
Russia's largest oil producer Rosneft said Thursday it has closed a deal to acquire Venezuelan state oil company PDVSA's 50% stake in major German refiner Ruhr Oel.

"As a result of this deal, about 18% of our company's refining capacity will be located in the industrial center of Europe, and Rosneft will get access to the oil products and petrochemicals market in Germany and neighboring countries," Rosneft CEO Eduard Khudainatov said in a statement.

The acquisition was approved by the European Commission in March and formally took place on May 1, Rosneft said.

Ruhr Oel, which is a 50:50 joint venture with BP, owns stakes in four German refining and petrochemical complexes: Gelsenkirchen (100%), MiRO (24%), Bayernoil (25%), and PCK Schwedt (37.5%).

Ruhr Oel's aggregate equity refining capacity in the four plants is 23.2 million mt/year.

"In developing cooperation with our partners BP, Rosneft plans to strengthen Ruhr Oel's position by adding its resource base on one hand and, on the other, improve its refining and petrochemical business with European best practice and modern technology," Khudainatov said. "The completion of this deal is an example of the long-standing partnership between Rosneft and BP, which has developed over many years."

The deal was for $1.6 billion, Rosneft said when the deal was originally announced in October 2010.

Meanwhile, the fate of Rosneft's other major deal planned with BP remains on hold. The companies are attempting a $16 billion share swap and Arctic exploration deal, but it has been held up in court by Alfa-Access- Renova, BP's Russian partners in Russia's third-largest producer TNK-BP.

AAR argues the deal would violate a shareholder agreement under which BP would pursue new opportunities in Russia via TNK-BP.

AAR won an injunction against the deal, although arbitration continues with a hearing scheduled for today in Stockholm.

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