CEFC China Energy Company Limited (CEFC China), the largest private company in Shanghai, has announced that CEFC China and the consortium of Glencore and QIA have substantially agreed terms on the purchase and sale of a 14.16% stake in the share capital of Rosneft Oil Company (Rosneft) at a share price representing a 16.1% premium to the last 30-day volume weighted average price as of September 8, 2017. The envisioned transaction has received the preliminary approval from the National Development and Reform Commission of China. The completion of the transaction is subject to final negotiations and the receipt of regulatory approvals of applicable government authorities.

The transaction reflects the strong belief of CEFC China in Rosneft’s quality reserve base, competitive standing in the industry, and the strength of its management team.

Chairman of the Board of CEFC China Ye Jianming notes, “We are delighted at the opportunity of becoming a strategic shareholder of the world’s largest public oil producer and to develop strategic cooperation with Rosneft across the board in exploration, refining, storage, logistics, and sales of the upstream oil and gas resources. The transaction will consolidate and elevate the position of CEFC China in the oil and gas sector with incremental 2P reserves of more than 20 billion barrels. CEFC China looks forward to further in-depth cooperation with Rosneft. By bridging Rosneft and the Chinese market and promoting the bilateral cooperation, CEFC China will better serve the energy demand of China. I strongly believe that the transaction will inject new energy into the economic and trade cooperation between China and Russia.”

Tags: CEFC China Energy Company Limited (CEFC China), Glencore, QIA, Rosneft Oil Company