19 Jun 2015 09:34
Total and Rosneft Signed a Sale and Purchase Agreement with Regard to the 16.67% Share in PCK Raffinerie GmbH
Total S.A. and Rosneft signed at the St. Petersburg International Economic Forum an agreement, confirming the execution of a sale and purchase agreement with regard to the 16.67% share in PCK Raffinerie GmbH. The document was signed by Rosneft Chairman of the Management Board Igor Sechin and Chief Executive Officer of Total Patrick Pouyanné.
The deal represents a natural element of the Rosneft strategy aimed at strengthening - its positions as an integrated player in Europe's energy market. Along with the planned reorganization of Ruhr Oel GmbH, the deal with Total will allow Rosneft to shore up its position in the German market for refined oil products.
The closing of the deal is subject to the fulfillment of conditions precedent, which includes regulatory approval.
Commenting on the deal Igor Sechin said: "The execution of this sale and purchase agreement reflects the high level of trust and mutual understanding between Rosneft and Total, two leaders of the global oil and gas industry. Long-term and mutually beneficial interests form the basis of the partnership between the two companies. The deal means the strengthening of Rosneft's positions in a key region - Western Europe - and confirms the Company's reputation as a reliable energy supplier to the European market".
"The execution of the term sheet, originally agreed by Rosneft and Total in November 2014 reflects the mutual commitment of both companies to creating and expanding a long-term partnership," commented Patrick Pouyanné, Chief Executive Officer of Total. "As for Total, the sale of our minority interest in the Schwedt Refinery is in line with our 2017 target to reduce Total's European refining and petrochemical capacity by 20%."
Notes for editors:
PCK Raffinerie GmbH refinery is located in the city of Schwedt/Oder in Brandenburg, Germany. Primary distillation capacity is 11.5 mln/t. Nelson Complexity index - 9.2. Shareholders: 37.5% ROG, 37.5% Shell, 16.67% Total, 8.33% Eni.
In 2014 the overall Rosneft crude oil supplies to Germany accounted to ~20.3 mln tones, which is almost a quarter of all crude oil import of Germany.
In May 2011 Rosneft acquired a 50% share in Ruhr Oel GmbH (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 5 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 crude oil refining volumes - 21 mln tones in 2014.
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June 19, 2015
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