CEFC China to Acquire a 14.2% Stake in Rosneft From Glencore and QIA Consortium

SHANGHAI, September 8, 2017 /PRNewswire/ --

Today CEFC China Energy Company Limited (CEFC China), the largest private company in Shanghai, announces that CEFC China and the consortium of Glencore and QIA have substantially agreed terms on the purchase and sale of a 14.16% stake in the share capital of Rosneft Oil Company (Rosneft) at a share price representing a 16.1% premium to the last 30-day volume weighted average price as of September 8, 2017. The envisioned transaction has received the preliminary approval from the National Development and Reform Commission of China. The completion of the transaction is subject to final negotiations and the receipt of regulatory approvals of applicable government authorities.

The transaction reflects the strong belief of CEFC China in Rosneft's quality reserve base, competitive standing in the industry, and the strength of its management team.

Chairman of the Board of CEFC China Ye Jianming noted: "We are delighted at the opportunity of becoming a strategic shareholder of the world's largest public oil producer and to develop strategic cooperation with Rosneft across the board in exploration, refining, storage, logistics, and sales of the upstream oil and gas resources. The transaction will consolidate and elevate the position of CEFC China in the oil and gas sector with incremental 2P reserves of more than 20 billion barrels. CEFC China looks forward to further in-depth cooperation with Rosneft. By bridging Rosneft and the Chinese market and promoting the bilateral cooperation, CEFC China will better serve the energy demand of China. I strongly believe that the transaction will inject new energy into the economic and trade cooperation between China and Russia."

A further announcement will be made in due course.

Notes for editors

Founded in 2002, CEFC China Energy Company Limited (CEFC China) is the largest private oil and gas company in China. Specializing in energy, the company has developed an international presence with the focus on investing in oil and gas development in Russia, Central Asia, Central and East Europe, Middle East and Africa, securing substantial upstream oil and gas resources, rights and equities. CEFC China is also in possession of oil and gas terminals in Europe, including oil refineries and gas stations. It has built up an integrated industrial chain for its oil and gas business on a global basis. With diversified financial platforms and investment banking institutions in Europe and other places worldwide, CEFC China is well-positioned to conduct investment based on its international investment banking business and to promote the integration of global resources and technologies, which are conducive to the fast and sustainable development of the company.

CEFC China now has a workforce of nearly 50,000. With its annual revenue exceeding 40 billion US dollars, it has been honored as one of the Most Influential Chinese Enterprises, Top 10 Most Internationally Competitive Leading Chinese Enterprises. CEFC China has made its way into the Fortune Global 500 for 4 consecutive years, ranking at 222^nd this year.

Rosneft Oil Company is a world's largest public integrated oil and gas company with current hydrocarbon production exceeding 5,800 kboed and unique reserve base with over 46 bboe of proved PRMS reserves and estimated offshore resources of more than 300 bboe.

Its well-diversified business is represented by c. 1,100 licenses for hydrocarbon production, 13 refineries in Russia and stakes in 5 refineries abroad, a wide network of c. 3,000 retail sites as well as a solid in-house OFS platform operating 280 drilling rigs covering over 50%of its drilling needs.

Rosneft employs c. 300,000 people while its presence in 24 countries makes the Company one of the key global majors.

Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.

Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 160,000 people, including contractors.

Qatar Investment Authority (QIA) was founded by the State of Qatar in 2005 to strengthen the country's economy by diversifying into new asset classes. Building on the heritage of Qatar investments dating back more than three decades, its growing portfolio of long-term investments help complement the state's huge wealth in natural resources.

Headquartered in Doha, and now with a subsidiary in New York <>, QIA is structured to operate at the very highest levels of global investing. As a world class investor, QIA adheres to the strictest financial and commercial disciplines. It has a strong track record of investing in different asset classes, including listed securities, property, alternative assets and private equity in all the major capital markets as well as the newer emerging markets.

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