Vitol takes delivery of first oil shipment from Rosneft

The new long-term supply deal represents Vitol’s first with the Russian state oil company in eight years.

Rosneft has assets in Vietnam. Credit: ROSNEFT.

Switzerland-based trading firm Vitol has reportedly received an oil shipment from Russian producer Rosneft.

The delivery forms part of a long-term supply deal signed between the companies in September 2021.

Under the deal, Rosneft agreed to supply nine million tonnes per year of Urals and ESPO blends, and the Sokol grade. This would be equivalent to 180,000 barrels per day (bpd), reported the news agency citing sources familiar with the matter.

In this month, Vitol is scheduled to receive 400,000t of Urals from Baltic ports, 300,000t of ESPO Blend from Kozmino port, and 80,000t from the Black Sea port of Novorossiisk.

The delivery volumes and grades are anticipated to vary each month.

Additionally, the deal is expected to include some oil products in 2022, two sources said.

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The new deal represents the first for Vitol with Russian state oil company in eight years. The trading firm signed an agreement with Rosneft in 2013 for the supply of 20 million tonnes of oil over a five-year period.

A source with another trading firm was cited by the news agency as saying: “The new deal gets Vitol back on the map as a major buyer of Russian oil.”

Earlier this year, a preliminary agreement was signed by Rosneft to sell a stake of 5% in Vostok Oil to Vitol and Mercantile & Maritime consortium. The deal was planned to be finalised this autumn.

Last year, global commodities trader Trafigura acquired a 10% stake in Vostok Oil from Rosneft for $8.1bn (€7bn).

Furthermore, Rosneft is in talks with undisclosed big investors to partner in Vostok Oil.

In September 2021, Press Trust of India reported that ONGC Videsh, the overseas unit of India’s ONGC, was seeking to purchase a minority stake in the Vostok Oil project.

According to estimates, the Vostok Oil project holds combined resources of more than six billion tonnes or around 44 billion barrels of premium crude.