OREANDA-NEWS. March 11, 2013. Rosneft signed long-term crude supply contracts with Glencore and Vitol, two of the world’s leading trading companies. Contracts signed are constituted by a series of supply transactions, the price of which is set at Rosneft tenders. Contracts were approved by Rosneft BOD.

The agreement with Glencore envisages supply volumes of up to 46.9 mln tonnes of crude, while the contract with Vitol envisages volumes of up to 20.1 mln tonnes.

Before the supplies start Rosneft is to receive a prepayment of up to USD 10 bln that can be used for corporate-wide and investment purposes.

Commenting on the agreements Igor Sechin, Rosneft President and Chairman of the Management Board said: “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.

I would like to note that the opportunity for other partners joining these contracts is open.

We would like to thank all our partners as well as external legal counselors, consultants and funding partners who were involved in arranging this deal.”

Ivan Glasenberg, CEO, Glencore, said: “We are pleased to begin this new agreement with Rosneft, which increases our access to one of the world’s most important oil markets.”

Ian Taylor, President and CEO of the Vitol Group of companies, said: “We are pleased to have concluded an important long-term contract with Rosneft, one of our industry’s leading and most influential global companies.”