By the OGJ Online Staff
HOUSTON, Oct. 25 -- BP Oil International, a business unit of BP PLC, agreed to buy 1.65 million tonnes of oil from Russian company Tyumen Oil Co. over 10 years.
The deal is part of financing arrangements for the upgrade of Tyumen Oil's Ryazan refinery 120 miles southeast of Moscow (OGJ Online, Sept. 11, 2000). ABB Group unit ABB Lummus Global is carrying out the work (OGJ Online, Apr. 16, 2001).
"Tyumen Oil and BP have been working closely together on a number of projects, and this oil supply agreement represents a further expansion of our relationship," said Joseph Bakaleinik, Tyumen Oil's chief financial officer.
The two companies are partners in Russia's Sidanko oil company and RUSIA Petroleum natural gas company.
"This long-term contract with Tyumen Oil will further consolidate BP's leadership in the Russian crude oil market and will help satisfy the crude oil needs of our refineries," said Anders Morland, the president of BP Russia.