Russia’s Oil Giant Rosneft Opts For Qatar Funds, Instead of China’s CEFC, to Sell Stake

Russia’s Oil Giant Rosneft Opts For Qatar Funds, Instead of China’s CEFC, to Sell Stake

Xu Wei

Date: Mon, 05/07/2018 - 21:12 / source:Yicai
Russia’s Oil Giant Rosneft Opts For Qatar Funds, Instead of China’s CEFC, to Sell Stake
Russia’s Oil Giant Rosneft Opts For Qatar Funds, Instead of China’s CEFC, to Sell Stake

(Yicai Global) May 7 -- Qatar’s investment agency has stepped in to buy a stake in Russia’s oil giant PJSC Rosneft Oil Co. after China’s CEFC China Energy Co.’s plan to buy a USD9.1 billion stake in the company has collapsed.

Rosneft expects Qatar Investment Authority, QIA, to come up with a series of mutually beneficial new projects as it will hold the equity, the Russian company said. It, however, added that China remains to be the strategic focus of the company, Russian news agency Sputnik reported today.

The commodity trading giant Glencore plc said that its consortium with Qatar’s sovereign wealth fund decided not to go ahead with CEFC’s plans. QIA will instead buy about 19 percent stake in Rosneft, most of which -- about 14 percent, was originally slated for the Chinese energy company.

In September 2017, CEFC signed an agreement with the consortium to buy a 14.16 percent stake in the Russian oil titan for USD9.1 billion. The acquisition was going to be the largest such deal for CEFC since its founding and make the company the third-largest shareholder of Rosneft Oil, ranking it among the world’s largest oil giants.

The Sputnik did not reveal the reason for the termination of the transaction between CEFC and Rosneft Oil. The Russian company s will continue to explore business in global markets and that the Chinese market is the strategic focus of the company development at present and in future, it said.

Editor: Mevlut Katik

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Keywords: RUSSIA, Rosneft, CEFC, M&A, Glencore, Oil