Rosneft today agreed with Petróleos de Venezuela S.A. (“PDVSA”) to acquire PDVSA’s 50% stake in Ruhr Oel GmbH. The agreement was signed in the Kremlin in the presence of Russian President Dmitry Medvedev and Venezuelan President Hugo Chavez.

Rosneft will pay $1.6 billion for the 50% stake, excluding PDVSA's share of crude inventory and receivables to be valued at closing.

Ruhr Oel GmbH is a 50/50 downstream joint venture between BP and PDVSA. The JV has ownership stakes in four German refining and petrochemical complexes: Gelsenkirchen (including a 3.9 mmtpa petrochemical complex) – 100%, MiRO – 24%, Bayernoil – 25%, and PCK Schwedt – 37.5%. Ruhr Oel’s aggregate equity refining capacity in the four plants is 23.2 million tonnes per annum (mmtpa), amounting to approximately 20% of total German refining capacity. The acquisition increases Rosneft’s equity refining capacity by 11.6 mmtpa.

Commenting on the transaction, Rosneft’s President Eduard Khudainatov said, “This transaction is consistent with our strategy to expand our presence with high quality assets in key international markets. As a result of this acquisition, 18% of Rosneft’s refining capacity will be located in the heart of industrialized Europe. Furthermore, our resource base will strengthen Ruhr Oel’s competitive position, while our growing refining and petrochemical businesses will benefit from joint ownership via Ruhr Oel of leading technologies and management practices.”