Indian Essar denies talking share sales to Iran
Baku, Azerbaijan, Nov. 20
By Dalga Khatinoglu - Trend:
Indian Essar has not discussed sale of its shares to Iran, an Essar Oil and Gas Ltd spokesperson told Trend.
Meanwhile, Iran's Deputy Petroleum Minister Abbas Kazemi said Nov. 18 that Iran has started negotiations to buy an equity stake in India's Essar refinery.
Kazemi said Iran was planning to buy the plants of the refinery abroad, after the sanctions imposed on Iran are removed. He also said that Iran plans to invest in refineries abroad, where Iran will serve their demand for crude oil.
Essar is one of Iran's main crude oil clients.
"Essar has signed a non-binding term sheet with (Russian) Rosneft for exclusive negotiations in relation to sale of Essar Oil shares and there is no other discussion in this regard," the spokesperson said.
Rosneft signed a preliminary deal in July to purchase up to 49 percent of Essar refinery.
Most of the Gulf States, who are among the main oil exporters, have a considerable number of refineries in the EU, the United States, and Asia, while Iran owns only part of the Modares refinery's share in India.
Iran has said it is interested in rebuilding economic relations with other countries and is encouraging foreign investment in its industries and infrastructure.
Lifting the sanctions against Iran could increase the supply of Iranian oil to the world energy market by half a million barrels per day next year. This surplus will stabilize the world's oil prices at the current low level. The International Monetary Fund believes that Iran will increase its oil production (including condensate) by 20 percent to 3.7 million barrels per day in 2016.