Rosneft Gets $3 Billion Credit Line for Regional Projects
Stock Chart for Rosneft OAO (ROSN)
OAO Rosneft agreed to borrow as much as 100 billion rubles ($3 billion) for five years from VTB Group as it plans an oil refinery near Moscow and aims to develop projects with Eni SpA (ENI) and Statoil ASA. (STL)
Igor Sechin, the head of Rosneft and Vladimir Putin’s former deputy prime minister for energy, signed a series of agreements today at the St. Petersburg International Economic Forum as the state-run oil producer expands transnational alliances and seeks to tap growing fuel demand at home.
“All of these projects will be realized through our partnership with VTB and using the credit line,” Sechin told reporters today at the event. “The credit is for regional projects in Russia.”
Rosneft may build an oil refinery in the Moscow region at a cost of more than $7 billion and with capacity of as much as 12 million metric tons a year, Sergei Shoigu, the regional governor, said at the forum.
The company may also use the funds to help build an oil products pipeline from Rosneft’s Samara group of refineries, construct a petrochemical complex in Russia’s Far East and modernize refineries, according to Sechin.
Rosneft today also signed agreements with Eni and Statoil, bolstering accords reached in April and May.
Statoil will get the right to help develop five fields with hard-to-recover resources in the Stavropol region of southern Russia, Sechin said. The companies also agreed in May to cooperate in the region and West Siberia, as well as four blocks in Russia’s part of the Barents Sea and in the Sea of Okhotsk, as well as in Norway’s offshore.
Rosneft will grant Eni access to resources in the Arctic offshore and Black Sea, in exchange for stakes in refining and North African production assets, Sechin told reports after the signing.
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