EMEA News
BP, Rosneft Ink $5.4 billion Oil Deal
BP Plc. will buy $5.4 billion in oil, including up to almost 2 million tonnes of fuel oil worth $1.5 billion, from Russia's Rosneft under a long-term deal, Reuters reports.
It is the first such deal Rosneft has made with an oil major, although trading houses Glencore, Vitol, and Trafigura struck a $11.5 billion, five-year agreement with the Russian company.
Under the new deal, BP will get up to 840,000 tonnes of fuel oil worth $620 million from the Black Sea port of Tuapse, and BP Singapore will receive up to 1.1 million tonnes of fuel oil worth up to $920 million from the Far East port of Nakhodka.
The agreement also includes up to 3 million tonnes of Urals oil from Primosrk on the Baltic Sea and 1.68 million tonnes from Novorossiisk on the Black Sea, worth a total of $3.7 billion.
Nakhodka and other Far East ports have ramped up sales of fuel oil over the past year, offering lower prices than other Asian ports.
