JLF gives nod to Rs 86,000 crore Essar Oil-Rosneft deal

Key highlights

• JLF clears Rs 86,000 crore worth Essar Oil-Rosneft deal
• Rosneft will takeover Essar's Vadinar refinery and 3500 outlets
• Rosneft CEO Igor Sechin informed shareholders that deal is now "closed"

23-bank consortium called Joint Lenders' Forum (JLF) has cleared Essar Oil and Russia's Rosneft deal worth nearly Rs 86,000 crore ($13 billion).

"Deal includes Vadinar refinery, associated infrastructure and 3,500 retail outlets," sources said. 

All-cash sale deal consists of Essar Oil's 20 million tonne refinery at Vadinar in Gujarat and 3,500 retail outlets across the country.

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The sale transaction decision was announced on October 15, 2016 when Prime Minister Narendra Modi met Russia's Vladimir Putin in BRICS Summit held in Goa. 

On Thursday, Rosneft CEO Igor Sechin had informed in a shareholders' meeting that the takeover of Essar Oil can now be considered as "closed".

Sechin had mentioned that as per the deal, Rosneft will hold 49% stake and with this stake the Russian company will increase oil refining output by 20% this year.

ALSO READ: Russia's Rosneft CEO says takeover of India's Essar is closed

According to a Reuters report, Sechin also said Rosneft's gas production is set to be rising by more than 10% a year, while overall investments are seen at more than 1 trillion roubles annually in the coming years.