Nayara Energy Limited, 49.13% of which is held by Rosneft Oil Company, works on a milestone development programme for its Vadinar refinery. The first stage involves the organization of production of petrochemical products and a foray into Indian petrochemical market.

The first phase of the Vadinar refinery development programme includes construction of new units to provide for production of up to 450,000 tonnes of polypropylene per annum. The project is to be completed in 2022.

The first phase’s preliminary cumulative investments amount to $850 million. It is intended to fund the programme with the Indian company’s own means, as well as through bank financing. At the moment, the programme undergoes an economical evaluation, upon results of which a final decision on implementation of the project is to be made during 2019.

The new development programme will provide for strengthening of Nayara Energy’s financial performance and enhancing of the current production efficiency in medium term.

A meeting between the Republic’s Prime Minister Narendra Modi and Rosneft top-management was held on the sidelines of Vibrant Gujarat Global Summit 2019 in India. During the meeting, the parties discussed prospects of cooperation and the development programme of Nayara Energy.

In addition, the summit saw Nayara Energy’s and Gujarat government’s signing of a Memorandum of Understanding, under which the authorities of the Indian region will facilitate implementation of the Vadinar refinery new development programme.

About Nayara Energy Limited

Nayara Energy Limited is a high-class asset featuring Indian refineries and a chain of filling stations. Rosneft and a consortium of international investors Trafigura and UCP acquired the asset from Essar Energy Holdings and its affiliates in August 2017. This provided an entry for Rosneft into one of the fastest-growing world markets. Nayara Energy owns the second largest private refinery in India with throughput of 20 mtpa (Nelson index 11.8; conversion rate 95.5%), as well as an oil depot terminal, a port, infrastructure, and a chain of filling stations (approximately 4,800 stations).

About Rosneft

Rosneft is the leader of Russia’s petroleum industry and the world’s largest publicly traded petroleum company. Company’s main activities include prospecting and exploration of hydrocarbon deposits, oil, gas and gas-condensate production, upstream offshore projects, processing, as well as oil, gas, and product marketing in Russia and abroad. The Company is included in the list of strategic companies and organizations of Russia. Company’s largest shareholder (69.50% of the equity) is ROSNEFTEGAZ OJSC, fully owned by the Russian Government, while BP holds 19.75% of shares, one share belongs to the state represented by Federal Agency for State Property Management, whereas the remaining shares are free floating.