NEW DELHI: Mukesh Ambani's Reliance Industries Ltd has signed a deal to import crude oil worth $12-13 billion a year from Russia's Rosneft for 10 years, sources said. Russian state oil firm Rosneft will supply up to 500,000 barrels per day (25 million tonne a year) of crude oil to Reliance, they said.
Reached for comments, a Reliance spokesperson said Russia is currently the largest supplier of crude oil to India.
"We are always engaged with a number of international suppliers, including from Russia, for sourcing feedstock for our refinery. As per practice, such supply contracts are done for the following year. The number of cargoes will vary depending on economics given the prevailing market conditions," the spokesperson said. The deal comes ahead of President Vladimir Putin's planned visit to India. PTI & Reuters
Reliance-Rosneft deal has 10-year extension option Under the deal, Rosneft would deliver 20-21 Aframax-sized cargoes (80,000 to 100,000 metric tons) of various Russian crude grades and three cargoes of about 100,000 tons each of fuel oil each month, the three sources said.
The new deal accounts for roughly a half of Rosneft's seaborne oil exports from Russian ports, which leaves not much supply available for other traders and middlemen, one source said.
From Jan to Oct, Reliance imported an average 405,000 barrels per day of Russian oil, up from 388,500 bpd in the same period last year, according to tanker data obtained from sources. The new deal between Rosneft and Reliance was discussed and approved during Rosneft's board meeting in Nov, two of the sources said.
Supplies will start from Jan and are set to continue for 10 years with an option to extend the deal for another 10 years, the three sources said. The pricing of the grades to be supplied on delivered basis is set at differentials to the average Dubai price of the loading month, according to the sources.
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