Rosneft, Essar sign terms of oil supply agreement

Dec. 11, 2014
OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

The agreement is for about $10 billion over a 10-year period, and involves 10 million tonnes/year, The Economic Times reported.

The agreement was signed by Shashi Ruia, founder of Essar, and Rosneft Pres. Igor Sechin. Attending were Indian Prime Minister Narendra Modi and Russian President Vladimir Putin.

Ruia said the agreement “provides good long term raw material security to our refineries.” Sechin said the strategic potential “can hardly be overestimated.”

Essar Oil Ltd.’s Vadinar refinery in Gujarat has a capacity of 20 million tonnes/year and a complexity of 11.8.