On June 21, 2013, Rosneft and SANORS petrochemical holding company signed Heads of Agreement (HoA), under which the parties intend to create a joint venture that will incorporate Rosneft’s gas processing assets and SANORS’ petrochemical assets in Orenburg and Samara regions. It is expected that Rosneft’s stake in JV will be no less than 50%, while Sanors’ stake will not exceed 50%.
The HoA was signed by Rosneft President and Chairman of the Management Board Igor Sechin and SamaraNefteOrgSintez’ President Igor Soglayev in presence of Samara Governor Nikolay Merkushkin during St Petersburg International Economic Forum.
Objectives, for which a joint venture will be created, and its future development strategy provide for construction of a brand new world class petrochemical complex in Samara region. It is planned that the complex will be focused on import substitution and meeting growing domestic demand for key polymers and other chemicals able to meet market competition in terms of quality and technologies.
Future implementation of the HoA predetermines deep integration of Rosneft’s oil and gas production and refining facilities with SANORS’ existing and greenfield petrochemical producing units.
The parties plan to further negotiate formation of the joint venture and sign binding documents by the end of 2013.
Notes for Editors:
Rosneft, the largest publicly traded oil and gas company in the world in terms of production and reserves, runs powerful and state-of-the-art oil and gas production, oil and gas processing units, its own retail chain and scientific divisions in Samara and Orenburg regions.
SANORS petrochemical holding company– SamaraNefteOrgSintez asset management company (Novokuibyshevsk) was founded in 2011 from a merger of SamaraOrgsintez, Neftekhimia and Novokuibyshevsk Petrochemical Company. In 2012, the holding company incorporated NK TPP-2. SANORS produces a wide variety of petrochemical products, such as phenol, acetone, alpha-methyl-styrene, ethylene, synthetic ethanol, alkylphenols, etc.