Glencore to allocate stake in Russian oil company Rusneft.

Commodity trader Glencore has agreed to sell its stake in Russian oil company Rusneft to an undisclosed buyer. reports Reuters.

The news agency cites Glencore CEO Gary Nigel as saying the sale comes at a time when commodity trader considers Rusneft “no longer relevant to its business.”

The company is trying to unload its share since the reorganization of Rusneft’s top management.

Reuters quotes an undisclosed source in Glencore, which participates in the Russian oil market: “Glencore chooses the right time to leave Rusneft, because oil prices are good and assets are quite risky.”

The agreement was signed in December 2021, completion is scheduled for the first half of 2022. The transaction is subject to approval by regulatory authorities. The financial terms of the deal are not disclosed.

Daily “Kommersant”. According to sources, Glencore’s stake in the Russian oil company will be sold to former Rusneft owner and founder Mikhail Gutseryev. The value of the shares may be about 146 million dollars (11 billion rubles).

Last year, RussNaft set a target of 6.78 million tons of oil in 2022. It is also planned to invest 22.7 billion rubles in capital investments, most of which will be related to drilling.

The firm, which has a capacity of about 130,000 barrels per day, aims to build 100 new wells to increase oil production by 635,000 tons this year.

With nearly 8,000 employees, Rusneft has a portfolio of assets located in key Russian oil and gas provinces, including Western Siberia, the Volga-Urals and Central Siberia, as well as Azerbaijan.

Earlier this month, Mayor of Technimont signed a contract for the construction of a vacuum hydrocracking gas oil complex at the Ryazan refinery in Russia.

Related companies Glencore to allocate stake in Russian oil company Rusneft.

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