Essar Oil Ltd. and Rosneft have signed a long-term crude oil supply agreement for the import of crude oil over a period of 10 years.
Essar Oil operates the second-largest single-location refinery in India and has a large requirement of crude oil that has to be primarily met by imports. This agreement with Rosneft will help Essar Oil to diversify its supply sources, expand geographical market coverage, and enhance supply security.
The contract will ensure supplies of 10 million tons per annum of crude oil and feedstock to Essar’s Vadinar refinery over a period of 10 years. Adequate operational flexibility is provided for the refinery to benefit from the international oil market opportunities.
Expanding the scope of partnership, Rosneft and Essar Oil & Gas Ltd./Essar Energy Holdings Ltd. have signed a non-binding term sheet with regard to Rosneft’s participation in the equity capital of Essar Oil Ltd. with a share of up to 49%.