The debts of Russia’s top oil producer Rosneft are likely to rise as a result of its plan to buy a non-controlling stake in Indian oil refiner Essar Oil, Moody’s credit ratings agency said on Monday. <\/p>\n
Rosneft, whose net debt stood at $24.5 billion at the end of September, hopes to conclude a deal to buy a 49 percent stake in the 400,000 barrel-per-day refinery in western India by the end of June. <\/p>\n
Denis Perevezentsev, vice-president and lead Rosneft analyst at Moody’s, said the deal would be credit negative as it could increase the Russian company’s leverage, while not offering any clear benefits. <\/p>\n
In a note, Moody’s estimated that Rosneft could pay $2-$3 billion for a 49 percent stake in Essar Oil. <\/p>\n
“The deal’s structure has not yet been disclosed, but Rosneft is likely to increase its debt by the amount of the deal if it or a subsidiary purchases the asset for cash,” Perevezentsev told Reuters. <\/p>\n
Rosneft, under Western sanctions over Moscow’s role in the Ukraine crisis which limits its ability to borrow on global markets, will have to repay about $13.7 billion this year . <\/p>\n
Moody’s also said it treated as a debt-like item the pre-payments of about $43.4 billion received by Rosneft last year under long-term oil and oil products supply deals. Rosneft is yet to publish its full-year 2015 results.<\/p>\n","protected":false},"excerpt":{"rendered":"
The debts of Russia’s top oil producer Rosneft are likely to rise as a result of its plan to buy a non-controlling stake in Indian oil refiner Essar Oil, Moody’s credit ratings agency said on Monday. Rosneft, whose net debt stood at $24.5 billion at the end of September, hopes to conclude a deal to buy a 49 percent stake in the 400,000 barrel-per-day refinery in western India by the end of June. Denis Perevezentsev, vice-president and lead Rosneft analyst at Moody’s, said the deal would be credit negative as it could increase the Russian company’s leverage, while not offering […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-60247","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/60247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=60247"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/60247\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=60247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=60247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=60247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}