On 21 December 2012 Rosneft agreed heads of terms for long-term crude supply contracts with Glencore International plc ('Glencore') and Vitol, two of the world's leading trading companies. Under the heads of terms, Rosneft plans to sign contracts with a prepayment for a duration of 5 years to supply up to 67 mln tonnes of crude in total. The supplies are expected to commence in 2013.

The parties agreed the possibility of replacing crude supplies with respective petroleum product supplies for various supply routes.

Igor Sechin, Rosneft President and Chairman of the Management Board, said, "Heads of terms agreed today lay a solid basis for a long-term and mutually beneficial cooperation between Rosneft and major international oil traders. I would like to note the price formula is in line with the prices that Rosneft receives for crude at medium-term tenders."

Tags: Rosneft