Russia’s leading oil & gas company Rosneft is planning to buy stake in Essar Oil

India: Rosneft, the leading petroleum industry in Russia plans to buy 49% equity stake in Essar Oil, which is expected to be completed by June 2016. Essar Oil, which is one of the major exploration & production company in India, specializes in crude oil refining and marketing of petroleum products. Essar oil owns the second largest private sector oil refinery, having a capacity of 20 million tons per annum at Vadinar in Gujarat. It also has coal-bed methane (CBM) blocks as well as petroleum pumps which increases its asset value.     

TechSci Research depicts that this agreement will bring new pace in Essar Oil business which is beneficial for India. Under this agreement, Rosneft will supply 10 million tons of crude oil every year to Essar Oil's which will anticipates its refinery & petrol pump business. Rising government concerns in petroleum exploration & production sector will enhance the growth of oilfield services on account of increasing oil & gas exploration and production activities within the country, which aims at reducing country’s dependence on oil imports. Oilfield services help smoothen the drilling process by eliminating the waste produced during drilling and enhance the oil recovery process by providing repair and maintenance of bore wells.

According to recently released TechSci Research report, “India Oilfield Services Market Forecast and Opportunities, 2020”, the market for oilfield services (OFS) in India is forecast to cross USD7.8 billion in 2020. With various Public Sector Undertakings (PSUs) planning to invest in E&P activities, the country’s oilfield services market is set to witness growth during 2015–2020.