Russian oil major Rosneft has concluded a deal with a company linked to Qatar and commodities trader Glencore to supply up to 55 million tonnes of crude in total over a 5-year period, Rosneft said in a statement on Tuesday.
The agreement follows the acquisition of a 19.5 percent stake in Rosneft by Qatar Investment Authority (QIA) fund and Glencore last month for around 710 billion roubles ($11.8 billion).
Under the terms of the acquisition, Glencore had said it would conclude a five-year supply agreement with Rosneft giving it an extra 220,000 barrels a day to trade.
The supply deal announced on Tuesday was between Rosneft and QHG Trading LLP. A Rosneft representative said the firm is a Glencore subsidiary. It is registered at the same address as Glencore's London office. Regulatory filings list company officers as Glencore Energy UK Ltd and Qatar Holding LLC, a unit of the Qatar Investment Authority.
Rosneft said in a statement on Tuesday that it may supply QHG Trading with between 4.5 million tonnes and 11 million tonnes of oil per year with the price being set according to a formula pegged to global oil prices.
Currently, Rosneft's largest buyer of oil is Swiss commodities trader Trafigura with estimated annual purchasing volumes of around 20 million tonnes, equal to the entire annual output of two large refineries or enough to meet the consumption of a country such as Spain for half a year.
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