Russian crude oil conglomerate Rosneft has entered into separate long term crude supply contracts with Glencore International and Vitol for supplies amounting to 67.0 million metric tons of crude oil. The deal involves a loan facility of US$10 billion to Rosneft before supplies are delivered.
The March 4 agreement projects supplies amounting to 46.9 million metric tons of crude oil to be delivered to Glencore while Vitol would be receiving up to 20.1 million metric tons.
The banks where Glencore and Vitol obtained the US$10 billion loan facility confirmed the transaction with Reuters. The funds would assist in financing the US$55 billion takeover bid for TNK-BP or some other corporate wide and investments purposes.
According to Rosneft President and Chairman of the Management Board, "We are happy to start the implementation of the long-term contracts after having agreed heads of terms late last year. A number of aspects constitute a landmark approach: on the one hand, we guarantee predictable supply volumes to our customers based on tender pricing, on the other - we receive prepayment that can be used for our strategic goals. The contracts are beneficial for all the parties: they support futher development of Rosneft resource base, guarantee stable supplies to Glencore and Vitol, ensure energy security for end consumers and in the long term will allow the optimization of transportation and logistics chains of crude and petroleum products sales."
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