Rosneft increases petroleum product supplies to Turkey

MOSCOW

REUTERS photo

Rosneft has said it signed a number of agreements with Turkey’s leading energy companies on the sidelines of the top level negotiations between Russian President Vladimir Putin and Turkish President Recep Tayyip Erdoğan on March 10. 

Rosneft signed an agreement on petroleum product supplies for the period between 2018 and 2020 with Demirören Group, the company said in a statement. 

The document follows up on the development of the existing partnership between the parties, as in December 2016, a contract was signed for Rosneft to supply up to 840,000 tons of diesel fuel.

The new agreement determines the intention of the parties to sign an additional contract for the supply of up to 4.6 million tons of oil products by 2020, with 3.6 million tons of ultra-low-sulfur diesel-10 ppm and 1 million tons of liquefied petroleum gas, according to the statement. 

As a result of the implementation of the agreement, Rosneft will meet more than half of Demirören’s annual demand for petroleum products. 

The agreement serves to strengthen mutually beneficial relations between Russian and Turkish partners.

When the agreement enters into force, Rosneft said it will significantly strengthen its positions in the Turkish market, to which the company will be able to supply an additional 11.3 percent of imported and about 6 percent of all diesel fuel consumed in the country.

Rosneft and BA Gas Enerji Sanayi ve Ticaret A.S. entered into a cooperation agreement in a move to organize the supplies of up to 6 million tons of oil products per year - including Rosneft production - to end-users in Turkey.

During the period of 2005 - 2015, the consumption of petroleum products in Turkey grew by 35 percent, from 30.5 million tons in 2005 to 41.1 million tons in 2015, according to data on the company’s website.