"There are discussions going on. I cannot comment anything further," said a source close to the Russian giant.
     
Last year, Rosneft had signed an initial deal to supply 10 million tonnes a year or 200,000 barrels per day (bpd) of oil to Essar Group over 10-years. There are negotiations on signing a firm term sheet for beginning of supplies, another source said.
     
At the time of signing crude deal, Russian bank VTB had inked a deal to open a USD 1 billion credit line to Essar. The source close to Rosneft said Essar has offered a strategic stake of 50 percent minus 1 share in Essar Oil.
     
Industry sources said Essar may be expecting a valuation of up to USD 8 billion of the company. Essar Oil operates a 20 million tons a year refinery at Vadinar and also has 1,600 petrol pumps in the country. It also has five coal-bed methane (CBM), holding up to 10 Trillion cubic feet of gas resource.

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