Russia's top oil producer Rosneft will buy 49 per cent stake in Essar Oil for about USD 3.2 billion

Russia's top oil producer Rosneft will buy 49 per cent stake in Essar Oil for about USD 3.2 billion after excluding the Mumbai-based firm's flourishing coal-bed methane (CBM) business. Rosneft, the world's top listed oil producer, will get a hold in India's second biggest oil refinery as well as its 1,600 petrol pumps that will more than triple to 5,000 in two years. The Russian firm will also supply 10 million tonnes a year of crude to Essar Oil's 20 million tonnes per annum Vadinar refinery in Gujarat for 10 years. "Rosneft and Essar Oil & Gas Ltd / Essar Energy Holdings Ltd, companies incorporated and managed under the laws of Mauritius, have signed a non-binding Term Sheet with regard to Rosneft's participation in the equity capital of Essar Oil Ltd with a share of up to 49 per cent," Essar Oil said in a statement. The proposed transaction is conditional upon various factors such as due diligence, determination of the transaction price, execution of definitive transaction documents and receipt of requisite approvals, it said without disclosing the deal size.