MOSCOW (MRC) -- Total and Rosneft said Friday they have signed a Term Sheet that envisages the main terms and conditions of the purchase by Rosneft of a 16.67% share held by Total in a refinery located in Schwedt, Germany (PCK Raffinerie GmbH), as per Eurasia Review.
The document was signed in Sochi by the Head of Rosneft Igor Sechin and Chief Executive Officer of Total Patrick Pouyanne.
PCK Raffinerie GmbH refinery is located in the city of Schwedt/Oder in Brandenburg, Germany. Primary distillation capacity is 11.5 mln/t, with a Nelson index of 9.2. Current shareholders include: 37.5% ROG, 37.5% Shell, 16.67% Total, 8.33% Eni.
Once the deal is closed, Rosneft together with Ruhr Oel GmbH will manage close to 55% of the refinery’s ownership.
According to Rosneft, the deal represents a deepening of the energy partnership between Russia and Europe based on the effectiveness of supply of a refinery located along the Druzhba pipeline. Total and Rosneft are further agreeing on an off-take agreement to supply Total’s retail and wholesale customers securing stable supply to the premium Berlin and surrounding areas, markets and customers supplied by pipeline from the refinery.
Commenting on the signing Igor Sechin said, "This agreement is reflective of the level of trust, long-term commitment and mutual benefit in the relationships between Total and Rosneft. It proves the effectiveness of the European-Russian energy partnership in that it delivers added value to all companies and countries involved. As for Rosneft, this deal means a strengthening of its position in one of Europe’s most efficient and effective refineries and an opportunity to serve the end-customers in its most important market".
In May 2011, Rosneft acquired a 50% share in ROG in Germany. ROG holds a share in 4 refineries in Germany (Gelsenkirchen - 100%, Bayernoil - 25%; MiRO – 24%; PCK- 37,5%). Moreover the joint venture holds stakes in five pipeline and sea crude oil terminals in the North, Baltic, Mediterranean and Adriatic Seas. Rosneft partner in the JV on a parity basis is BP Europa SE. ROG is the leader of German market in terms of refining volumes –-21.2 mln tones in 2013.
Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time. Rosneft also controls Angarsk Polymer Plant in Russia and Lisichansky refinery in Ukraine.
MRC