Shipment term

Vitol takes delivery of Rosneft’s first oil cargo

Swiss-based trading company Vitol reportedly received a shipment of oil from Russian producer Rosneft.

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

As part of the agreement, Rosneft has agreed to supply nine million tonnes per year of Ural and ESPO blends, as well as the Sokol grade. That would equate to 180,000 barrels per day (bpd), the news agency reported citing sources familiar with the matter.

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

Delivery volumes and qualities should vary each month.

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

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

A source from another trading company was quoted by the news agency as saying: “The new deal puts 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 5% stake in Vostok Oil to Vitol and the Mercantile & Maritime consortium. The deal was expected to be finalized this fall.

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

Additionally, Rosneft is in talks with large undisclosed investors to partner with Vostok Oil.

In September 2021, Press Trust of India reported that ONGC Videsh, the foreign unit of the Indian ONGC, was seeking to acquire a minority stake in the Vostok Oil project.

The Vostok Oil project is estimated to hold combined resources of over six billion tonnes or approximately 44 billion barrels of premium crude.

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