Iran has some tough new competition in the race to capitalize on India’s booming demand for oil.
State-owned Russian energy giant Rosneft is the lead investor in a $12.9 billion buyout of India’s Essar Oil that was announced over the weekend. Russian investment group United Capital Partners (UCP) has also snapped up a stake.
The purchase of the oil refiner gives Russia more muscle in India at a time when its demand for energy is booming.
“Rosneft is entering one of the most promising and fast-growing world markets,” CEO Igor Sechin said in a statement.
India is already the world’s third-largest oil importer, and its demand will jump by more than 300,000 barrels per day this year, according to the International Energy Agency. That’s more than any other nation.
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