February 1, 2013
Rosneft President and Chairman of the Management Board Igor Sechin visited Hamburg Friday to sign a contract for supply of crude oil via the Druzhba pipeline to Poland, where the crude will be purchased by PKN Orlen, owner of the Plotsk refinery. The amount of the contract equals to ca. 15 billion USD at current prices. The contract envisages a supply volume of some 6 mln tonnes per year (totalling approximately 18 mln tonnes for the whole contract period). Delivery term for the contract is until January 31, 2016.
In late January Rosneft also signed contracts for supply of crude oil via the Druzhba pipeline to Germany. Under the terms of these transactions crude will be purchased by the subsidiaries of Total and Shell, which have interests, among others, in the German PCK Schwedt refinery. It is also planned to sign a similar contract in the nearest future with Eni which also holds stake in the refinery.
Delivery term for the contract with Total is December 31, 2015. Contracts with Shell and Eni will operate throughout 2013 but their term can be extended and delivery volumes increased.
Apart from the said contracts, Rosneft also has an agreement for supply of crude oil through the Druzhba pipeline to Germany via Rosneft Trading S.A. The contract ensures deliveries of crude to PCK Schwedt refinery as part of Rosneft-ВР JV Ruhr Oel GmbH.
In 2012 Rosneft carried out steady deliveries of crude oil on these export routes. The additional contracts for the supply of crude oil to Germany and Poland will result in Rosneft exports via the northern branch of the Druzhba pipeline increasing to almost 13 million tonnes a year.
Igor Sechin noted that signing long-term direct contracts fits in Rosneft strategy to create shareholder value through boosting the effectiveness of crude sales, meets consumers’ interests and enhances energy security in Europe.
Eurasia Review is an independent Journal and Think Tank that provides a venue for analysts and experts to disseminate content on a wide-range of subjects that are often overlooked or under-represented by Western dominated media.
Despite the combined Eurasia and Afro-Asia areas containing over 70% of the world’s population, analysis and news continues to be dominated by a U.S. slant, and that is where Eurasia Review enters the picture by providing alternative, in-depth perspectives on current events.
Read all posts by Eurasia Review