Rosneft and PDVSA sign long-term oil contract

Within the Petersburg International Economic Forum, Rosneft Group and PDVSA signed a long-term contract for oil and oil products supplies by the Venezuelan company on a pre-paid basis.

The document was signed by Rosneft President, Chairman of the Managing Board of Rosneft Igor Sechin and the Venezuelan Minister of public power for oil and metal mining industry, PDVSA President Rafael Ramirez.

The signature ceremony was led by the President of the Russian Federation Vladimir Putin.

The document envisages the supplies of over 1.6 million t of oil and 7.5 million t of oil products within 5 years. The pre-payment within the contract will be US$ 2 billion.

It is worth noting that this is the first time such a big deal for oil and oil products supplies between a Russian and a Venezuelan company is forged, opening wide perspectives for the co-operation of Rosneft and PDVSA in the trading sphere.

Commenting on the signing Igor Sechin said: “The realisation of the contract will allow Rosneft to substantially increase the geography and strengthen its positions as global leader on the oil and oil products market. This agreement represent a new phase of partnership between Rosneft and PDVSA. Following the partnership in the upstream sphere our companies start to cooperate in the sphere of trading. I am sure we will be able to achieve great results in every Rosneft-PDVSA joint project.”

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/27052014/rosneft_and_pdvsa_sign_long_term_oil_contract/