Russia-India oil deal challenges Saudi supremacy in Asia

[Kaniska]

https://www.rt.com/business/363024-deal-russia-india-mideast-market/

 

[Kaniska]

he $13 billion sale of India's Essar Oil to Russia's Rosneft and other investors, gives Russia access to the most promising and fastest growing market. The deal also challenges Middle East producers who provide nearly two-thirds of India’s imported energy.


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The agreement, signed on Saturday, is the biggest foreign acquisition in India. Rosneft is purchasing a 49 percent stake in Essar, with another 49 percent sold to a consortium of the Netherlands-based commodity trading house Trafigura and a Moscow-based private investment company United Capital Partners.

India is expected to become the fastest growing oil consumer through 2040, according to the International Energy Agency.

The deal includes the sale of nearly 2,700 Essar Oil filling stations and allows Rosneft access to a market of 1.3 billion people which imports 80 percent of its crude requirements.

“India will be the most important product-growth market over the next 25 years, making it important to Russia,” said Neil Beveridge, a Hong Kong-based analyst at investment advisory Sanford C. Bernstein & Co.

Another critical aspect for Russia was beating out rival suitors from Iran and Saudi Arabia to buy Essar.

“This would be in response to Saudi Arabia’s attempts to penetrate the European market, which is dominated by Russian oil,”said Abhishek Kumar, an analyst at InterfaxEnergy’s Global Gas Analytics in London, stressing that the acquisition would bring Russia greater influence in the Asian market.


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The transaction opens up a “unique synergetic possibilities” for active assets owned by Rosneft, as well as for projected enterprises, said Rosneft CEO Igor Sechin. The takeover offers the potential to expand in the Asia-Pacific region by supplying fuel to Indonesia, Vietnam, the Philippines and Australia, according to Sechin.

The Russian oil firm plans to supply ten million tons of Venezuelan crude to Essar’s Vadinar refinery over the next decade. Rosneft and Venezuela’s state-owned Petroleos de Venezuela signed a strategic partnership pact earlier this year.

370

I believe this deal is important for India Russia economic integration than any other arm deal.

 

[migflug]

Russia barges in on Iran's oil bromance with India
by Rishi Iyengar @CNNMoneyInvestOctober 17, 2016: 9:17 AM ET
Rel

It's a trend that has attracted other top crude producers -- especially Iran.

Iran has been upping its oil production since it was freed from sanctions in January. Much of the crude has been sold to India, which maintained close ties with Tehran while the trade restrictions were in place.

India is well positioned as a buyer because many of its refineries were built to process Iranian-grade crude.

Storage tanks at an Essar Oil facility in India.


But Rosneft's purchase of Essar Oil will complicate Iran's play.

Roughly 40% of the crude imported from Iran was refined at Essar Oil's massive refinery in the state of Gujarat.

Now that the refinery is under new ownership, it's likely to be processing more shipments from Russia.

Lalit Kumar Gupta, Essar Oil's chief executive officer, told Bloomberg in August that shipments from Iran would decline if Rosneft bought a stake in the Indian firm.

"When they are on board we will see how much to buy, what to buy," he said.

Now, Iran might need to find new buyers in a global market already saturated with supply.



CNNMoney (New Delhi)First published October 17, 2016: 9:17 AM ET

 

[wiseone2]

saudis are the king because of their reserve capacity

 

[ali_raza]

saudis are the king because of their reserve capacity

they are king because there purity of oil.its durt cheap to produce

 

[Lotus_stalk]

Ocean currents, in addition to keeping the spilled oil offshore, spurred microbial activity amidst the oil spill. That continuous mixing of the water allowed a bacterial bloom to turn millions of barrels of oil into an estimated 100 sextillion microbial cells of ethane-consuming Colwellia, aromatic-eating Cycloclasticus, alkane-eating Oceanospirillales, oil-eating Alcanovorax, methane-loving Methylococcaceae and other species, including at least one previously unknown to science.

https://www.scientificamerican.com/article/how-microbes-helped-clean-bp-s-oil-spill/

This bacterium can be weaponized... can turn oil wealth to dust over time... forcing saudi to sell oil faster or lose everything

 

[Indika]

saudis are the king because of their reserve capacity

who cares but they need to find market for their oil. India's dependence on ME region for oil is down to 59% of its consumption if it is reduced to 30-35% then we can take on pakistan without fear of oil embargo.

 

[ashok321]

saudis are the king because of their reserve capacity

Beside kings there are monarchs & emperors:

they are king because there purity of oil.its durt cheap to produce

Dont use the word "pure" when it comes to crude oil:

BTW, Kuwait beats SA in production cost.

 

[Lotus_stalk]

oil-eating bacteria Alcanovorax has lots of potential.... I'm sure Israelis might have weaponized it already...

Israelis have joined with Ethiopians to dam Nile river... and build pressure on Egypt...

They helped India in kargil conflict... now India has emerged as its greatest supporter...

 

[wiseone2]

Beside kings there are monarchs & emperors:

Dont use the word "pure" when it comes to crude oil:

BTW, Kuwait beats SA in production cost.

saudis have two factors - low cost of production and ability to deploy swing capacity
it is economic equivalent of a nuclear weapon

they are king because there purity of oil.its durt cheap to produce

it is dirt cheap to produce
it used to be $1 per barrel

 

[ali_raza]

oil-eating bacteria Alcanovorax has lots of potential.... I'm sure Israelis might have weaponized it already...

Israelis have joined with Ethiopians to dam Nile river... and build pressure on Egypt...

They helped India in kargil conflict... now India has emerged as its greatest supporter...

whats that bacteria

 

[ashok321]

saudis have two factors - low cost of production and ability to deploy swing capacity
it is economic equivalent of a nuclear weapon
l

Well, then the Saudi surely looks like Korea Del Norte, reeling under economic pressure.
Nuclear weapons do not alleviate country's economic situation.

Ask Russia (nuclear stockpile greater than the US), whose rubble was on a one way ride during Crimea crisis under EU-US sanctions.

What good is this so called swing factor, something that did not help Saudis steer the (present) lowest prevailing crude rates in their own favor.

What a swing producer:

Do not lock the horns with others just for the heck of it.