Russia-based state-owned oil company, Rosneft has signed long-term deals with Swiss trading and mining company Glencore and The Netherlands’ energy and commodity trading company Vitol, to supply 67 million tons (MT) of crude oil, for a prepayment of $10bn.
Under the contracts, the company would supply 46.9MT of crude oil to Glencore and 20.1MT to Vitol.
The company will use the prepayment for its corporate-wide and investment purposes, according to a press statement.
Rosneft president and management board chairman Igor Sechin said the company has begun the implementation of the long-term contracts, the terms of which were agreed in late 2012.
"A number of aspects constitute a landmark approach: on the one hand, we guarantee predictable supply volumes to our customers based on tender pricing, on the other – we receive prepayment that can be used for our strategic goals," Sechin added.
"The contracts are beneficial for all the parties: they support futher development of Rosneft resource base, guarantee stable supplies to Glencore and Vitol, ensure energy security for end consumers and in the long term will allow the optimization of transportation and logistics chains of crude and petroleum products sales."