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Essar Oil in talks with overseas oil trading firms to sell 23.5% stake

Essar Oil Ltd, India’s second largest refiner outside government control, is in talks with overseas oil trading companies to sell 23.5% in the company, according to two people aware of the development.“They are in talks with several international oil trading companies including Trafigura Group Pte, Glencore Plc and others,” said one of the people cited above, requesting anonymity as the talks are private.

Essar Oil is in talks with few oil trading companies and is currently assessing their interest in purchasing a stake, which will take into consideration several factors including the type of oil produced.Talking is not enough, one has to assess their interest in purchasing stake which depends on – the type of oil that they produce, are they oriented towards the Indian geography etc. It will reach the M&A desk once the initial talks are done and one can get clarity in another two weeks on who is leading the talks,” said the second person, also requesting anonymity.

Last July, Essar Oil signed an agreement with Rosneft for supply of 10 million tonnes of crude per annum to the Vadinar refinery in Gujarat for 10 years.