BP secures Rosneft oil deals worth 3.3 billion pounds
MOSCOW (Reuters) - BP (BP.L) has clinched deals to buy $5.3 billion (3.3 billion pounds) of oil from Rosneft (ROSN.MM), becoming the first oil major to secure such long-term deals with the Russian company.
While trading houses Glencore (GLEN.L), Vitol and Trafigura have agreed to lend Rosneft $11.5 billion in exchange for oil supplies over five years, oil majors have largely stayed on the sidelines, preferring to buy Russian crude at spot tenders.
However, the world's top listed crude producer said in a regulatory filing that it would supply Britain's BP with up to 3 million tonnes of Urals oil from the Baltic Sea port of Primorsk and 1.68 million tonnes from the Black Sea port of Novorossiisk, worth $2.4 billion and $1.3 billion respectively.
It also said that BP will receive up to 840,000 tonnes of fuel oil, worth $620 million, from Tuapse at the Black Sea, while BP Singapore will handle up to 1.1 million tonnes of fuel oil, worth up to $920 million, from the Pacific port of Nakhodka.
A Rosneft spokeswoman declined to disclose the timescale for the deal, though the company would be unable to lift such volumes at short notice.
Trade sources told Reuters last week that BP was working on becoming the first oil major with a long-term deal to buy seaborne crude from Rosneft, after a number of trading houses this year secured large volumes from the Kremlin energy champion.
Rosneft usually sells its oil at tenders for trading houses and oil majors, which resell the seaborne cargoes or use the oil to supply their refineries. (Reporting by Vladimir Soldatkin; Editing by Megan Davies and David Goodman)
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