Rosneft may decide on Nairit plant purchase in late October

Rosneft may decide on Nairit plant purchase in late October

PanARMENIAN.Net - Negotiations are ongoing with Russia’s top oil producer Rosneft for sale of Nairit plant, Aravot daily said quoting the Energy and Natural Resources Minister.

The agreement with Rosneft includes several stages: assessment of the effectiveness and acceptability of the program-suggested technology, investments and possible ecological issues.

According to the Armen Movsisyan, with the first 3 stages having proved positive, Rosneft is inclined to invest.

The ongoing ecological assessment will be finalized by late October, with the sale to start should the 4th stage prove successful, the daily quoted the Minister as saying.

Earlier, Russian oil major Rosneft agreed with Italian Pirelli to visit Armenia’s Nairit to assess possible lines of cooperation.

At the September 3 meeting with Nairit director general Hovhannes Akhinyan, Rosneft President Igor Sechin discussed potential possibilities of Rosneft participation in production of chloroprene rubber at Nairit.

Rosneft will decide on participation in the project after an audit, as well as upon completion of talks with the Armenian government.

According to earlier reports, Rosneft and gas producer Itera were in talks with the Armenian government to make investments in the country’s largest petrochemical plant.

Armenian Minister of Energy and Natural Resources Armen Movsisyan repeatedly noted that $400-500mln is needed to upgrade Nairit plant.

Nairit specialises in the production of chloroprene rubber. In 2006, 90% of Nairit’s shares were sold to British Rainoville Property Limited for $40 million.

The remaining 10% belong to the Armenian government. According to some estimates, a comprehensive upgrading of this facility will require hundreds of millions of dollars.

Nairit has been operating at minimal capacity since a gas price hike in 2010 made production unprofitable.

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