信实拒绝就此问题进行展开，称供应协议属于公司机密。但其表示，该公司与包括俄罗斯在内的国际供应商合作，所有交易是建立在市场评估上作出的决定。① The Russian state-owned oil company Rosneft is reported to have agreed to supply Reliance Industries in India nearly 0.5 million barrels of Crude Oil Product per day; ② This agreement will last for 10 years, with the annual supply accounting for 0.5% of the Global total, valued at 13 billion dollars based on current oil prices. ③ This will be the largest Energy cooperation agreement in the history of India and Russia.
According to the Financial Association on December 12 (editor: Ma Lan), sources revealed that the Russian state-owned oil company Rosneft has agreed to supply nearly 0.5 million barrels of Crude Oil Product daily to Indian private refiner Reliance, which will become the largest Energy Trade in history between the two countries.
It is reported that the duration of the agreement is 10 years, with the annual supply accounting for 0.5% of the Global supply, equivalent to 13 billion dollars based on current market prices. This cooperation will undoubtedly further strengthen the Energy relationship between India and Russia, providing a substantial inflow of funds to Russia, which is facing Western sanctions.
Reliance refused to elaborate on the matter, stating that the supply agreement is a company secret. However, it stated that the company collaborates with international suppliers, including Russia, and all transactions are based on market assessments.
Currently, Russian oil accounts for more than one-third of India's energy imports, and this market share has been greatly driven by Western sanctions. Due to international trading restrictions, Russia's Urals oil is at least 3-4 dollars cheaper per barrel than similar oils, which has also fueled India's purchasing enthusiasm for Russian Crude Oil Product.
Major Deal
India is currently one of the fastest-growing Energy markets, which has attracted the competition among international oil producers for this market. Previously, a significant portion of India's Crude Oil Product imports came from the Middle East, but now Russia has taken a considerable share.
Sources said Rosneft will deliver 20 to 21 Aframax tankers per month according to the agreement, each carrying about 0.08-0.1 million tons of various grades of Russian Crude Oil Product, as well as three tankers of about 0.1 million tons of fuel oil. These supplies will flow into Reliance's refinery located in Gujarat, India, which is also the largest refinery in the world.
For Russia, the new agreement accounts for about half of the Crude Oil Product exported by Rosneft via Marine Transportation, which means that the amount of oil supplied to traders and intermediaries, apart from Reliance in India, will be greatly reduced.
Two sources also revealed that most of the supply will be medium-sulfur Russian Urals Crude Oil Product, which is the most favored by Indian refiners, and its price for next year will be $3 per barrel lower than the Quote for Dubai Crude Oil Product.
The agreement also stipulates that Reliance will review the current prices and production with Rosneft annually, considering the dynamics of the oil market to adjust the supply. Official deliveries will start in January next year, initially lasting for ten years, and both parties may extend it for another ten years.
