A long term crude oil supply agreement was signed between Essar Oil and OJSC Rosneft Oil Company at Ufa, Russia for import of crude oil over a period of 10 years. This contract has been signed in pursuance to the key terms executed between the two companies in Dec'14 at New Delhi.

The company has signed a non-binding Term Sheet with regards to Rosenet's participation in the equity capital of Essar Oil with a share of up to 49%.

This long term crude oil supply agreement with a large integrated oil company like 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.

Prashant Ruia, chairman of Essar Oil, expressed happiness at the signing of the crude contract and strategic partnership with Rosneft. He expressed hope that these agreements will give a boost to increased cooperation in the hydrocarbon sector between India and Russia.

Shares of the company gained Rs 0.3, or 0.16%, to trade at Rs 188.90. The total volume of shares traded was 1,021,712 at the BSE (11.43 a.m., Thursday).