March 6, 2013 / 11:42 PM / 7 years ago

Rosneft finalizes $10 billion oil-for-loan deal with Glencore, Vitol

Rosneft President and Chairman of the Managing Board Igor Sechin speaks during the IHS CERAWeek energy conference in Houston March 6, 2013. REUTERS/Richard Carson

(Reuters) - Rosneft (ROSN.MM), Russia’s top crude producer, has signed long-term crude supply contracts with commodity traders Glencore International (GLEN.L) and Vitol VITOLV.UL for supply of up to 67.0 million metric tons of crude. The deal entails a $10 billion prepayment to Rosneft before supplies start.

The agreement, which was signed on March 4, envisages supply volumes of up to 46.9 million metric tons of crude for Glencore, and up to 20.1 million metric tons for Vitol, Rosneft said in a release dated March 6.

Bankers had told Reuters on January 28 that Glencore and Vitol asked banks for a $10 billion syndicated loan to finance the purchase of up to 67 million tons of crude oil from Russian group Rosneft.

Rosneft agreed long-term crude supply contracts with Glencore and Vitol in December as it sought funds to finance its $55 billion takeover of TNK-BP TNBP.MM.

Reporting By Shruti Chaturvedi in Bangalore; Editing by Bernard Orr

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