16/06/2015 12:36 PM IST | Updated 15/07/2016 8:25 AM IST

Essar Oil Might Sell 49 Percent Stake To Russia's Rosneft, Shares Soar

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SIKKA PORT, INDIA: Indian workers participate in an oil spill control exercise on board ICG Ship Samar during a 'Sagar Manthan-IV' exercise held off Sikka Port in the Gulf Of Kutch, 10 April 2007. The exercise was of a National Oil Spill Disaster Contingency Plan jointly orgainsed by Reliance Industries Limited, the Indian Oil Corporation, Essar Oil Limited, Mundra Adani Port and Bedi Port and the Indian Coast Guard. AFP PHOTO/ Sam PANTHAKY (Photo credit should read SAM PANTHAKY/AFP/Getty Images)

Essar Oil is trading at its highest level in last four years, after news of Russian oil giant OAO Rosneft's interest in buying 49 percent of the company for $1.64 billion.

Essar, owned by billionaire brothers Shashikant and Ravikant Ruia, might announced the deal later today after ongoing talks in Moscow. "The talks have narrowed down to valuation ad an announcement is expected anytime," said a banker close to the deal, according to this report in Business Standard.

Rosneft, the world's largest publicly traded oil company, pumps 40 percent of Russia's oil. Essar Oil is India's second largest private oil refiner, and owns a 400,000-barrels-per-day refinery in Vadinagar, Gujarat. Essar Oil's shares have soared 43 percent over the last four trading sessions on expectations of the deal going through.

“It is not our policy to comment on market speculations,” a spokesperson for Essar Oil said in a statement.

The two companies have worked together before. In December, Essar Oil had signed a deal with Rosneft to import 10 million tonnes of crude oil a year for 10 years. The deal was valued at $40 billion according to the price of oil at the time.

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