Rosneft agreed heads of terms for long-term crude supply contracts with Glencore International plc (Glencore) and Vitol, two of the world’s leading trading companies. Under the heads of terms, Rosneft plans to sign contracts with a prepayment for a duration of 5 years to supply up to 67 mln. tons of crude in total. The supplies are expected to commence in 2013.

 

The parties agreed the possibility of replacing crude supplies with respective petroleum product supplies for various supply routes.

 

Igor Sechin, Rosneft President and Chairman of the Management Board, said: "Heads of terms agreed today lay a solid basis for a long-term and mutually beneficial cooperation between Rosneft and major international oil traders. I would like to note the price formula is in line with the prices that Rosneft receives for crude at medium-term tenders."

 

Ivan Glasenberg, CEO of Glencore, said: "We are delighted to secure this heads of terms agreement with Rosneft. Not only does it reflect our strong belief in the importance of the Russian oil market, but further cements our relationship with one of the world’s leading oil and gas companies."

 

Ian Taylor, President and CEO of the Vitol Group of companies, said: "Rosneft has always been a very important trading partner for the Vitol Group. This heads of terms agreement underpins what is a key, long term, strategic partnership between our two companies."

 

Glencore is one of the world’s leading integrated producers and marketers of commodities, headquartered in Baar, Switzerland, and listed on the London and Hong Kong Stock Exchanges. Glencore has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of Metals and Minerals, Energy Products and Agricultural Products.

 

The Vitol Group was founded in 1966 in Rotterdam, the Netherlands. Since then the company has grown significantly to become a major participant in world energy markets and is now the world’s largest independent energy trader. Its trading portfolio includes crude oil, oil products, LPG, LNG, natural gas, coal, power, metals and carbon emissions. Vitol trades with all the major national oil companies, the integrated oil majors and the independent refiners and traders. Globally Vitol trades around 6 million barrels of crude oil and products per day and revenues in 2011 were $297 billion.