Benaulim (Goa), (IANS) : Russia’s Rosneft and an investment consortium led by Trafigura on Saturday said they have signed a pact to acquire 98 per cent stake in Essar Oil, and pay another $2 billion to buy Vadinar Port from the Indian industrial group.

“The all-cash deal encompasses Essar Oil’s 20 million-tonne refinery in Gujarat, India, and its pan-India retail outlets. The closing of the transaction is conditional upon receiving requisite regulatory approvals and other customary conditions,” the company said.

“The parties expect to obtain the relevant approvals before the end of this year.”

The announcement came after a meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin here.

Rosneft is one of the world’s largest petroleum companies with revenues of over $80 billion. It is engaged mainly in oil and gas exploration and production, refining and product marketing in Russia and across countries in North America, Latin America, Europe, Asia and the Middle East.

The first deal involves the sale of 49 per cent in Essar Oil to Petrol Complex, a subsidiary of Rosneft, while the second envisages the sale of the remaining 49 per cent to Kesani Enterprises, owned by a consortium led by Trafigura and United Capital Partners.

“An additional $2 billion will be paid for the acquisition of Vadinar Port, which has world-class storage and import and export facilities,” the company said.

Trafigura is a leading independent commodity trading and logistics group with revenues of $100 billion. United Capital Partners (UCP) is a large independent Russian private investment group with investments of over $3.5 billion in various industrial sectors.

“It is a historic day for Essar,” Essar Chairman Shashi Ruia said. “The transaction demonstrates our ability to build world-class assets and create immense value in our businesses. The monetisation of our stake in Essar Oil will help drive the next level of growth for our other businesses.”