BP clinches $6 billion fuel supply deal with Rosneft

Tue Nov 12, 2013 8:20am EST
 
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By Vladimir Soldatkin

MOSCOW (Reuters) - Top Russian oil firm Rosneft said it would sell about $6 billion worth of refined products to BP, establishing the British major among its biggest buyers after years without any such deal.

The latest transaction comes on top of a $5.3 billion deal for BP to buy crude, agreed earlier this year. Both came only months after Rosneft hired a former senior BP trader, Marcus Cooper, as head of its own trading arm in Geneva.

BP has become Rosneft's second-largest shareholder, behind only the Kremlin, after Rosneft took over BP's Russian venture TNK-BP for $55 billion in March.

But the participation in Rosneft's ownership was slow to translate into cooperation in upstream projects, while Exxon Mobil signed a flurry of deals with Rosneft to tap the Russian Arctic together.

BP has also been absent for many years from the list of major buyers of Rosneft's oil and refined products, while rivals such as Shell have been among the biggest players in taking oil exports from the world's largest producer.

Over the past year, Rosneft also has sold large amounts of crude to trading houses Glencore, Vitol and Trafigura as they have lined up $11.5 billion worth of pre-payment, which helped Rosneft ease the burden on its balance sheet.

MARCUS COOPER

BP had its first breakthrough in October, when it signed deals to buy $5.3 billion of crude oil from Rosneft.   Continued...

 
Parked cars stand outside a Russian oil company Rosneft petrol station near the Ostankino television tower in Moscow October 23, 2012. REUTERS/Sergei Karpukhin