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
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
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CNTBGBDBUGGBGDB -0- Nov/01/2012 10:15 GMT
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