With the agreement, which opens new horizons of cooperation between Russia and India, Rosneft has secured a market outlet of oil and oil products, while Essar has gained a stable partner as a supplier to its refineries.
Deliveries are expected to start in 2015.
Rosneft head Igor Sechin said: "The performance of the terms of the agreement will have a substantial impact on the scale of economical cooperation between Russia and India and will fuel significant growth in the goods turnover between two countries.
"For our Indian partners the signing of this agreement represents a vital element of basic supplies diversification which, at the same time, will ensure energy security for the country."
Essar founder 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."
Essar Oil owns India’s second largest single site refinery that has a capacity of 20 MMTPA and complexity of 11.8.
Image: The agreement signed by Rosneft and Essar opens new horizons of cooperation between Russia and India. Photo: Courtesy of Essar.
