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Rosneft-led Nayara Energy to invest $850 in Indian business

The documents were signed during the Vibrant Gujarat international economic forum

NEW DELHI, January 20. /TASS/. Indian company Nayara Energy, in which Russian state oil giant Rosneft holds a 49.13%-stake, has signed an agreement with the administration of India’s Gujarat state two memorandums of understanding (MoU) to invest $850 in expanding the Vadinar refinery there.

The documents were signed during the Vibrant Gujarat international economic forum the in the city of Ahmedabad, the Times of India reported on Saturday.

"I am glad to announce today that Nayara Energy will enter into an MoU worth USD 850 million with the Gujarat government for our ex expansion plan which will see us start a new refinery unit," the paper quoted Rosneft Global Head of Downstream Didier Casimiro as saying.

Nayara Energy CEO B Anand said the project envisages the construction of a Propylene Recovery Unit with an annual capacity of 450,000 tonnes, a Polypropylene plant with a similar capacity and a facility to produce 200,000 tonnes of MTBE (methyl tertiary-butyl ether, used in high-octane fuel production) annually.

Besides, some of the funds will be allocated for increasing the capacity of the existing facilities to produce petrol and diesel fuel. The company also undertook a commitment to engage in an irrigation project, intended to develop agriculture in the region.

Rosneft and its partners bought Essar oil in 2017 for $12.9 billion. The company was later renamed Nayara Energy. Its assets include an oil refining plant with an annual capacity of 20 million tonnes in the town of Vadinar in Gujarat.

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