FSUOGM: Rosneft expands in German refining
Russian oil giant Rosneft has announced it is expanding its German refining footprint through the purchase of Royal Dutch Shell’s minority stake in the 230,000 barrel per day (bpd) PCK Schwedt refinery in the country’s north-east.
Rosneft said on November 17 it had exercised its pre-emptive right for a 37.5% stake in the refinery, bolstering its share to 91.7%. Subject to government and regulatory approvals, the deal will bolster Rosneft’s overall refining capacity in Germany by 86,000 bpd to 344,000 bpd, establishing it as the second-largest player after Shell.
“Increasing the share of PCK refinery is testament to the strategic importance of the German market for Rosneft,” CEO Igor Sechin commented in a statement. “The company builds long-term relationships with its German partners, provides timely and uninterrupted crude supplies, and modernises key refining units.”
Rosneft’s other refining assets in the country include a 24% interest in the 310,00 bpd Miro refinery and a 28.6% stake in the 206,000 Bayernoil plants in Neustadt and Vohburg. Following the deal’s completion, its share of German refining capacity will rise from 12% to 17%.
Germany represents Europe’s biggest fuel market, where demand is expected to rebound to the pre-pandemic level this year.
As part of its energy transition plan, Shell is scaling back its conventional refining operations to focus more on low-carbon fuel production. It struck a deal in July to offload a 37.5% interest in the PCK Schwedt refinery to Alcmena, part of Estonia’s Liwathon Group. But Rosneft, like other shareholders at the plant, had a pre-emptive right to the interest.
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