New Delhi: Russian energy major Rosneft’s quest for a buyer for its stake in Nayara Energy seems to have ended up at Reliance Industries’ doors after lukewarm response from other Indian businesses, including state-run players. The two giants have started exploratory talks but it is too early to expect a definitive outcome due to Rosneft’s asking price of $20 billion, which had turned off businesses approached earlier. People in the know said Rosneft has softened its demand to $17 billion, which is still daunting for India’s largest private player in the oil sector. RIL described these as “market rumour”. But if and when these initial contacts translates into a deal, it will make RIL India’s largest refiner, displacing state-run IndianOil. RIL currently operates the world’s largest refining complex in a single location at Jamnagar in Gujarat, with a total capacity of 68 million tonnes per year.
Acquisition of Nayara will add another 20 million tonne per year to its capacity, surpassing IndianOil’s 80.7 million tonne, and will boost its market presence by adding 6,750 petrol pumps to its existing network of more than 1,700 outlets operated under Jio-bp brand.Rosneft has been looking to exit Nayara since last year as Western sanctions imposed after Moscow’s 2022 military action against Ukraine blocked repatriation of profit. It is not clear how it will repatriate the sale proceeds in case of a deal.The people cited above said last week’s deal between RIL’s fuel retail brand Jio-bp and the Adani-Total Gas, the gas business venture with French energy major Total, for selling their respective fuels from each other’s outlets, could be part of the Nayara acquisition chessboard.The Adani group, among others approached by Rosneft, is reported to have turned down the offer. The reason, in addition to Rosneft’s valuation, is the group’s agreement with Total that bars further fossil fuel investments. If RIL was to finally acquire Nayara, the Jio-bp deal will provide outlets for fuels, while Adani-Total Gas’ CNG business will benefit through access to Nayara’s network.People said talks with Rosneft could go the way RIL’s bid to rope in Saudi Aramco in its O2C (oil-to-chemicals) venture fell through over valuation, among other reasons. RIL is no stranger to Rosneft, having signed in Dec 2024 a deal for supply of 500,000 barrels per day of oil. It was valued at around $12-13 billion per year at oil prices of that time.
