OREANDA-NEWS. June 09, 2011. TNK-BP and Transaero Airlines have signed a long-term jet fuel supply agreement to improve the efficiency of the companies’ operations and further develop Russia’s oil product market, reported the press-centre of TNK-BP.

The key provision of the agreement is the use of a price formula to determine the supply price, with the formula being based on the indicative European jet fuel quotes published by Platts, a leading global provider of energy and raw material commodities information. The Platts index is recognized  as a benchmark by major companies operating in global markets. The Platts Index gives TNK-BP customers access to a wide range of advanced financial instruments, which enable them to effectively minimize risks related to the high volatility of oil and oil products prices.

Supplies under the agreement are expected to exceed 90 thousand tonnes in 2011. Transaero aircraft fueling services will be provided by “Toplivozapravochny kompleks Sheremetyevo”, the operator of jet fuel storage and into-wing fueling services at Sheremetyevo International Airport.

“As one of the top jet fuel suppliers to the Russian market, TNK-BP is interested in developing a transparent competitive environment and establishing long-term relations with major air carriers,” said Dmitry Ustinov, Vice President, Business Marketing and New Business Development, TNK-BP. “I’m confident that our mutually beneficial cooperation with Transaero will contribute to making the jet fuel market more efficient and predictable.”

Transaero Airlines General Director Olga Pleshakova stressed the following: “Entering into an agreement with TNK-BP is an important step in Transaero’s fundamental policy to expand direct long-term ties with Russia’s major jet fuel producers. Constructive cooperation with TNK-BP will ensure Transaero’s still greater efficiency in planning its tariff policy in the interests of making air travel affordable to its passengers.”