Rosneft has entered into definitive documentation to acquire 49% stake in Petrocas Energy International Limited (“Petrocas”), creating the joint venture (“JV”) for its activities in the South Caucasus region.
The deal represents an important growth opportunity for Rosneft – Petrocas owns and operates high-quality storage assets in one of the main oil and oil products logistics hub in the region. Through the JV Rosneft will considerably expand its presence in the region, amplify its geographic reach, and further diversify its supply routes options. The JV equally allows Rosneft to deepen its participation in the oil products trading market of Central Asia and South Caucasus, regions with high growth potential. Finally, the deal is an opportunity for Rosneft to enhance Petrocas’ leading position in Georgia’s retail market by offering stable supply of quality products and services to end-customers.
Commenting on the signing Rosneft Head Igor Sechin said: “This Joint Venture provides Rosneft with new opportunities for its operations and will secure supplies under existing contracts, moreover it will allow to expand supply, trading and logistics capabilities of the Company. I am sure, that this partnership will play a key role in the security of energy supplies of the region”.
David Iakobachvili, Chairman of Petrocas, commented: “We are excited about opportunities created by this JV. This transaction is an important endorsement of Petrocas’ success as regional player, that will bring the benefit to all of our stakeholders and is a new milestone that will highlight strategic importance of South Caucasian energy corridor”.