Russia's oil giant Rosneft will buy 50 percent of Germany's Ruhr Oel from Venezuelan state oil company PDVSA, an agreement signed by Rosneft and PDVSA on Friday said.
"The volume of the deal will amount to $1.6 billion, excluding PDVSA raw material reserves and accounts receivable, which will be valued when the deal is closed," Rosneft said in a statement.
PDVSA owns Ruhr Oel GmbH, which, together with BP, owns between 24 and 100 percent of the German Gelsenkirchen, Bayern-oil, Miro and Schwedt oil refineries.
The total oil processing volume of the refineries amounts to 50 million tons, or 20 percent of all German refining capacities.
The acquisition will increase Rosneft's refining capacity by 11.6 million tons per year.
"This transaction is consistent with our strategy of expanding our presence through high quality assets in key international markets," Rosneft President Eduard Khudainatov said in a statement.
RIA Novosti
