Rosneft, Sinopec Agree Memorandum On Prepaid Export Contract

(RTTNews) - Russia's state-owned oil company OAO Rosneft (ROSN.L) and Sinopec (SNP) inked the Memorandum on prepaid export contract. The deal was signed by Igor Sechin, Rosneft President and Chairman of the Management Board, and Fu Chengyu, Chairman of the Sinopec's board in the presence of Dmitry Medvedev, Prime Minister of the Russian Federation, and Li Keqiang, Premier of the State Council of PRC.

The Memorandum assumes supplies of crude oil in the volume of up to 100 mmt for 10 years starting from 2014 based on advance payment. Also, it assumes an opportunity for partial crude oil replacement with petroleum products. The value of crude oil sales would match the prices received by Rosneft via. regular tender bidding.

Commenting on the deal, Sechin said: "The agreement will help Rosneft arrange additional funding for exploration and production projects and construction of the necessary infrastructure".