RIL eyes Rosneft's stake in Nayara

RUSSIAN OIL GIANT PJSC Rosneft Oil Company is in early talks with Reliance Industries for sale of its 49.13% stake in Nayara Energy, which operates a 20-million tonne-a-year oil refinery and 6,750 petrol pumps in India.

- AMMAR ZAIDI

Reliance has held preliminary talks for acquisition of Nayara, which will help it overtake state-owned Indian Oil Corporation (IOC) to become India's No.1 oil refiner as well as give a meaningful presence in the fuel marketing space. But the talks are at preliminary stage and there is no guarantee that they may lead to a definite deal as valuation remains a sticky ground, three sources with direct knowledge of the matter said.

TOP ROSNEFT OFFICIALS have visited India at least thrice in the last one year, including visits to Ahmedabad and Mumbai, for talks with potential investors.

For Rosneft, which is looking to exit from Nayara due to western sanctions limiting its ability to repatriate full earnings from India operations, a potential buyer could be one who has substantial earnings overseas or is an international company-both of which could make quick overseas payouts for the stake.