It’s unclear how Vitol, who last year reported its strongest ever net income of about $3bn, plans to finance the purchase. Trafigura raised a €5.78bn loan organised by a Russian bank to fund the acquisition, according to regulatory filings. The trading houses are making large financial commitments in the project that could pump 1mn barrels a day of oil by 2027. The Trafigura deal valued the Vostok Oil project at $85bn – more than the market capitalisation of Rosneft itself. Turning to traders: Rosneft, partly shut out of the global financial system because of US sanctions on Russia, needs the traders’ cash. The project is ''interesting to the companies focused on feedstock supply, trading and logistics” that support wide distribution channels, Rosneft chief executive officer Igor Sechin said. The traders, flush with cash from record earnings as the pandemic caused dramatic price swings, are looking to lock in long-term supplies. Russia’s biggest oil producer is turning to trading houses even as many Western energy majors and investors have been reluctant to back big new oil projects, especially in environmentally fragile areas like the Arctic where Vostok Oil is located. Trafigura paid €7bn ($8.5bn) for its 10% stake, Rosneft said in February. Vitol and Mercantile & Maritime will pick up 5% stake in the project, Rosneft said in a statement, without disclosing the size of the deal. In July 2021, Trafigura divested its 10% stake in Vostok Oil to Hong Kong-based Nord Axis for an undisclosed price, a deal that was driven by sanctions imposed by the West on Russia for its military action on Ukraine.( MENAFN- Gulf Times) Russian oil giant Rosneft PJSC agreed to sell a stake in its Vostok Oil mega project to a consortium including Vitol Group, raising more money from trading houses after a Trafigura Group deal last year.
The production of Vostok Oil largely comprises high-quality low sulphur crude and its reserves are projected to be up to six billion tonnes of sweet crude. The Switzerland-based energy and commodity trading company holds a 75% stake in the joint venture, while Mercantile & Maritime owns the remaining 25% stake.Īt the time of buying the stake, Vitol said that the production of Vostok Oil was at 19 million tonnes per year, and was expected to ramp up to more than 100 million tonnes per year by the end of 2030.
Vitol and Mercantile & Maritime acquired the stake in Vostok Oil from Rosneft in October 2021 for $4bn, reported Reuters. It was subject to preceding conditions and has been finalised after the completion of all legal formalities, said Vitol. The sale of the stake by Vitol in the project was announced in July 2022. Making up the Vostok Oil project are the Vankorskoye, Tagulskoye, Suzunskoye, and Lodochnoye oil fields along with new potential oil fields in the form of Payakhskoye and Zapadno-Irkinskoye.
#Vostok oil trafigura license
Vostok Oil is the holding company for the Vostok oil project, which is made up of 52 license areas that contain 13 oil and gas fields, located north of the Krasnoyarsk region in Russia. Vitol said that its joint venture with the Mercantile & Maritime Group has completed the sale of its stake of 5% in Vostok Oil to Fossil Trading, FZCO, for an undisclosed price. Vitol and Mercantile & Maritime held a stake of 5% in Vostok Oil. Vostok Oil is the holding company for the Vostok oil project located north of the Krasnoyarsk region in Russia, which is made up of 52 license areas that contain 13 oil and gas fields such as Vankorskoye, Tagulskoye, Suzunskoye, and Lodochnoye
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