Rosneft ROSN Rosneft and INTER RAO 25-Year Gas Supply Contract

  Rosneft (ROSN) - Rosneft and INTER RAO 25-Year Gas Supply Contract

RNS Number : 0827Q
OJSC OC Rosneft
01 November 2012

Rosneft and INTER RAO UES Conclude 25-Year Gas Supply Contract

Rosneft and INTER RAO UES have concluded a contract on the supply of up to 875
billion cubic metres of gas. The  contract envisages annual supplies of up  to 
35 bcm of Rosneft-produced  gas to the  power plants of  INTER RAO -  Electric 
Power Plants (or any other INTER RAO UES power plants) beginning on 1  January 
2016 and running through 31 December 2040 on a take-or-pay basis. 32.3 bcm  of 
gas is to be supplied in 2016.

Under the agreement, natural  gas and dry stripped  gas will be supplied  from 
oil fields,  which will  allow Rosneft  to significantly  increase  associated 
petroleum gas utilisation.

This contract has been approved  by the boards of  directors of INTER RAO  UES 
and Rosneft.

Rosneft President  and Chairman  of  the Management  Board Igor  Sechin  said: 
"Rosneft has significant reserves of gas and producing and selling this gas is
a priority in terms of generating additional profit for Rosneft  shareholders. 
Concluding an agreement to supply gas directly to Russia's largest  generating 
utilities is the  most effective way  to monetise our  reserves. It will  also 
guarantee fuel supplies for power generation on transparent terms."

"Our partnership with  Rosneft, a global  oil and gas  major, is strategic  in 
nature and will  guarantee stable  supplies of fuel  to INTER  RAO UES'  power 
stations," said Boris Kovalchuk, chairman of the management board at INTER RAO
UES. "This contract is designed to guarantee stability for our company in  the 
long term and will  allow us to considerably  improve the efficiency of  power 
generation in Russia."

                                                              November 1, 2012

                                                  Rosneft Information Division

                                                      Tel.: +7 (495) 411 54 20

                                                       Fax: +7 (495) 411 54 21

These materials contain statements about  future events and expectations  that 
are forward-looking in nature. Any statement in these materials that is not  a 
statement of  historical fact  is a  forward-looking statement  that  involves 
known and  unknown risks,  uncertainties  and other  factors which  may  cause 
actual results,  performance  or achievements  expressed  or implied  by  such 
forward-looking statements to differ. We  assume no obligations to update  the 
forward-looking statements contained herein to reflect actual results, changes
in assumptions or changes in factors affecting these statements.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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