Rosneft to Supply BP with Up to 12 Mln Tons of Oil during 5 Years

© RIA Novosti . Vitaliy Ankov / Go to the mediabankOil reservoirs at the oil product depot of the Rosneft-Vostoknefteprodukt JSC
Oil reservoirs at the oil product depot of the Rosneft-Vostoknefteprodukt JSC - Sputnik International
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Russia’s largest oil company Rosneft is due to supply British Petroleum (BP) with up to 12 million tons of oil and petroleum products during five years on prepayment terms, the company said in a statement Friday.

KHABAROVSK, June 27 (RIA Novosti) - Russia’s largest oil company Rosneft is due to supply British Petroleum (BP) with up to 12 million tons of oil and petroleum products during five years on prepayment terms, the company said in a statement Friday.

The package of agreements, signed by the companies, envisages export supplies of petroleum products with the possibility of substitution with oil. The prepayment should be at least $1.5 billion.

A Rosneft spokesman told journalists that at the moment when the deal was signed the prepayment reached $2 billion.

Eight leading international banks took part in organizing the prepayment. “The prepayment’s sum will increase since several other banks expressed an interest,” Rosneft’s spokesman stated.

The price will be calculated based on the same formula Rosneft uses when selling oil and petroleum products during regular annual tenders. Deliveries can start as early as July 2014.

As Rosneft’s CEO Igor Sechin noted in the statement, Rosneft expands and strengthens its mutual partnership with its shareholder, British ВР.

“The deal opens up new possibilities for both companies, it provides BP with regular supply and guaranteed quality of oil products, while Rosneft maintains high profitability of its sales,” Sechin said.

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