Rosneft signs oil supply deal with BP

Russian energy firm Rosneft has agreed to supply BP Oil International with up to 12 million tonnes of oil products over five years.

The agreement assumes a prepayment of approximately $1.5bn. Deliveries on the contract are expected to commence in July.

Rosneft said that the term of effect of the agreements meets its interests in concluding long-term deals with major consumers and allows making long-term planning of supplies effectively.

Rosneft president and chairman of the management board Igor Sechin said that the company has extended and strengthened its mutually beneficial cooperation with BP.

"This transaction opens up new opportunities for both companies: it provides BP with stable supply chain and guaranteed quality of oil products and allows Rosneft to support high profitability of its sales activities and acquire additional financial resources in accordance with the referential nature of such deals," Sechin added.

Rosneft undertakes its exploration and production activities in West Siberia, Southern and Central Russia, Timan-Pechora, East Siberia, the Far East, and the Arctic region.

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Image: Rosneft and BP executives sign the contract. Photo: courtesy of Rosneft.