OREANDA-NEWS. Rosneft and Essar signed key terms of oil and oil products supplies to Essar refineries in India. Supplies may begin in 2015. Consequently Rosneft expands its distribution area and builds up deliveries to the region, where the world’s economy growth zones are concentrated.

The document was signed on December 11 in New Delhi by the Head of Rosneft, Mr Igor Sechin and the Founder of Essar, Mr Shashi Ruia in the presence of the Honorable President of the Russian Federation Mr Vladimir Putin and the Honorable Prime-Minister of India Mr Narendra Modi.

The reached agreement opens new horizons of cooperation between the two countries, thanks to the synergistic potential of the partnership in Upstream and Downstream areas of two leaders of the oil and gas industry of Russia and India. Thanks to this agreement Rosneft grants itself a secure market outlet of oil and oil products, while Essar gains a reliable and stable partner as a supplier of oil and oil products to its refining facilities.

Commenting on the signing Igor Sechin said: “The strategic potential of reached agreement between Rosneft – a global leader of hydrocarbon production – and Essar – a world’s leading player in the refining area – can hardly be overestimated. The performance of the terms of the agreement will have a substantial impact on the scale of economical cooperation between Russia and India – our Company estimates that the implementation of the contract will fuel significant growth in the goods turnover between two countries. For our Indian partners the signing of this agreement represents a vital element of basic supplies diversification which, at the same time, will ensure energy security for the country. The Russian counterpart, in turn, will get the possibility of production and supplies volume planning to a new region with considerable growth potential”.

Talking on the agreement Shashi Ruia said: “We are very happy to partner Rosneft, a global leader in hydrocarbon reserves and production, for long term supply of crude oil and products. This provides good long term raw material security to our refineries."