Rosneft, Russia’s state-owned oil producer, said in a statement on December 29 that it had agreed to buy 49% stake in Petrocas Energy Limited, and to launch a joint venture with the company for its oil shipment, storage, retail and logistics activities in South Caucasus.

Petrocas owns oil terminal in Georgia’s Black Sea port of Poti through its subsidiary Channel Energy and operates Georgia’s one of the largest retail chains under the Gulf brand. Through its subsidiaries, Petrocas also carries out logistics and oil shipment operations. 

Head of Rosneft, Igor Sechin, said the joint venture would provide Rosneft “with new opportunities for its operations and will secure supplies under existing contracts, moreover it will allow to expand supply, trading and logistics capabilities of the company.”

“I am sure, that this partnership will play a key role in the security of energy supplies of the region,” he said.

Chairman and main shareholders of Petrocas, David Iakobashvili, said the deal “is an important endorsement of Petrocas’ success as regional player, that will bring the benefit to all of our stakeholders. He also said that it “is a new milestone that will highlight strategic importance of South Caucasian energy corridor.”