One of the biggest energy stories this year has been Russia’s Rosneft buying India’s Essar Oil - giving the Russian company a firm grip on one of the world’s biggest emerging oil and gas markets.
And this past week, that story got more complex. With Rosneft striking another big deal — drawing in another heavyweight energy nation.
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Rosneft announced Friday it is selling a significant chunk of its equity to Chinese investors. In this case, little-known exploration and production firm CEFC China Energy.
Investors - CEFC - Company - Capital - Deal
Although few investors know CEFC, the company is bringing significant capital to the deal. With the firm agreeing to pay $9 billion to acquire a 14.16 percent stake in Rosneft.
The deal is historic in being the first major buy-in by China into the Russian oil and gas sector (although Chinese firms have been involved in financing LNG export projects in the Russian Arctic).
Strength - Ties - Russia - China - Energy
Showing the strength of the ever-growing ties between Russia and China in the energy space.
Rosneft and CEFC have been at the center of that burgeoning relationship. With the two companies having signed a deal this past September for long-term supply of Russian crude into China.
Week - Equity - Purchase
This week’s equity purchase further...
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