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Rosneft and Essar agreed on key terms

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Hydrocarbon Engineering,

Rosneft and Essar signed key terms of oil and oil products supplies to Essar refineries in India. Supplies may begin in 2015. Consequently Rosneft will expand its distribution area and build up deliveries to the region, where the world’s economy growth zones are concentrated.

The Head of Rosneft, Mr Igor Sechin and the Founder of Essar, Mr Shashi Ruia signed the document on the 11th of December in New Delhi in the presence of Mr Vladimir Putin and the Prime Minister of India Mr Narendra Modi.

The agreement opens new horizons of cooperation between the two countries, thanks to the synergistic potential of the partnership in upstream and downstream areas of two leaders of the oil and gas industry of Russia and India. Thanks to this agreement Rosneft grants itself a secure market outlet of oil and oil products, while Essar gains a reliable and stable partner as a supplier of oil and oil products to its refining facilities.

Commenting on the signing Igor Sechin said: “The strategic potential of the agreement between Rosneft – a global leader of hydrocarbon production – and Essar – a world leading player in the refining area – can hardly be overestimated. The performance of the terms of the agreement will have a substantial impact on the scale of economical cooperation between Russia and India – our company estimates that the implementation of the contract will fuel significant growth in the goods turnover between the two countries. For our Indian partners the signing of this agreement represents a vital element of basic supply diversification, which at the same time will ensure energy security for the country. The Russian counterpart, in turn, will get the possibility of production and supply volume planning to a new region with considerable growth potential”.

Talking on the agreement Shashi Ruia said: “We are very happy to partner Rosneft, a global leader in hydrocarbon reserves and production, for long term supply of crude oil and products. This provides good long term raw material security to our refineries."

Adapted from press release by Joe Green

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