2 Min Read
LONDON (Reuters) - Glencore said on Wednesday it would enter a new deal to buy oil from Rosneft as part of a broader move by the Russian government to sell a stake in its major oil firm with Glencore injecting limited equity into the transaction.
The Swiss-based firm confirmed it was in final-stage negotiations to buy, as part of a consortium with the Qatar Investment Authority, a 19.5 percent stake in Rosneft for 10.2 billion euros.
It said that under the proposed arrangements, Glencore would commit 300 million euros in equity with the balance for the acquisition to be provided by QIA and by non-recourse bank financing.
It said it would also enter a new 5-year offtake agreement with Rosneft to buy an additional 220,000 barrels per day of oil for the Glencore marketing business.
"Other than the economic exposure represented by the Glencore Equity, (amounting to a 0.54 percent indirect equity interest in Rosneft), Glencore would not have any economic exposure to its interests in the shares," it said.
Reporting by Dmitry Zhdannikov; Editing by Adrian Croft