Rosneft and Essar ink supply agreement for petroleum products

Russia’s Rosneft has entered into an agreement to supply Essar group oil and oil products for its 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, Igor Sechin and the Founder of Essar, Shashi Ruia in the presence of Russian President, Vladimir Putin, and Narendra Modi, Prime Minister of India.
 
“The 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,” said Essar in a press release. As a result of this agreement, Rosneft gets a secure market outlet of oil and oil products, while Essar gains due to reliable and stable supply of oil and oil products for its refining facilities.
 
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 economic 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.”
 
He added, “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.”
 
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.”
 
Essar Oil Limited, one of the assets in the energy portfolio of Essar, is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to refining and oil retail. Essar Oil owns India’s second largest single site refinery having a capacity of 20 MMTPA and complexity of 11.8, which is amongst the highest globally. It has a portfolio of onshore and offshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves & resources. There are more than 1,700 Essar-branded oil retail outlets in various parts of India.