Rosneft and Essar Expand Cooperation-Replacement

The following amendments have been made to the 'Rosneft and Essar Expand Integrated Cooperation' announcement released on July 8, 2015 at 15:43 under RNS number 5432S.

Sentences 'The parties intend to significantly increase the refinery's capacity, which will bring the capacity level of 45 mln t PA by the year 2020.' and 'The parties plan to increase the total quantity of retail sites to 5,000 within the next 2 years.' have been replaced by 'From this base the parties intent to further develop both refining and marketing businesses in India.'

In 'Notes for editors' sentence 'The Vadinar refinery is the second in India and one the world leading 20 refineries by refining capacity, it is also one the 10 most complex refineries in world (Nelson complexity index is 11.8).' has been replaced by 'The Vadinar refinery is the second largest refinery in India and one of the most complex refineries in world.'. Sentence 'The deregulation of pricing of gas in the Indian market opens growth perspectives for retail sales.' has been replaced by 'The de-regulation of pricing of diesel and petrol opens growth perspectives for retail sales.'.

All other details remain unchanged.

The full amended text is shown below.

Rosneft and Essar Expand Integrated Cooperation

Rosneft Chairman of the Management Board and Essar Group Founder Shashi Ruia signed a long-term contract for oil supplies for the purpose of refining at the Vadinar refinery (India).

The document was signed in Ufa within the BRICS summit in continuation of the agreements, reached in 2014 during the visit of the President of the Russian Federation Vladimir Putin to India.

The contract envisages total supplies of 100 mln tones of crude oil over a period of 10 years.

Rosneft expands market outlet and amplifies the volume of supplies to the region, where growing points of the world's economy are concentrated. Thanks to this agreement Rosneft grants itself a secure market outlet of crude oil, which will create an additional possibility of production planning and marketing.

Moreover, Rosneft and Essar shareholders signed a Term Sheet with regard to Rosneft's participation in the Vadinar refinery equity capital with a share of up to 49%. The principles laid down in the Term Sheet, will be reflected in final documents, which are subject to approvals.

Rosneft participation in the refinery's equity capital will allow Rosneft to obtain a share in one of the biggest refineries in India and the Asia-Pacific region. The refining capacity of the Vadinar refinery is 20 mln t PA. The deal also includes marketing business whereby Essar operate a retail chain of 1,600 stations located in India. From this base the parties intent to further develop both refining and marketing businesses in India.

The implementation of the proposed transaction will increase the earning capacity of Rosneft operations in the region along the whole value chain and open new perspectives for the development of commercial activities in Asia-Pacific, will promote the expansion of the trading business' potential.

Commenting on the signing, Igor Sechin said: "The reached agreement is of a strategic nature. The performance of the terms of the signed documents will have a substantial impact on the scale of economical cooperation between Russia and India. The goods turnover between two countries will grow more than 50%. The new formula of integrated cooperation opens wide perspectives for the development of dialogue, both in specialized and related areas".

Notes for editors:

The Vadinar refinery is the second largest refinery in India and one of the most complex refineries in world. The refinery is highly flexible in terms of raw materials use and is capable of refining heavy and ultra-heavy oil. In addition the refinery has access to a deep-water port, capable of accommodating VLCC tankers.

Essar Oil Limited also possesses a retail chain in India. The de-regulation of pricing of diesel and petrol opens growth perspectives for retail sales.

Rosneft Information Division

Tel.: + 7 (499) 517-88-97

July 9, 2015

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligation to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.