MOSCOW, November 1 (RIA Novosti) – Russia’s largest oil company Rosneft has signed a 25-year deal to supply state power trader Inter RAO with natural gas, Rosneft said in a statement on Thursday.
“Rosneft and Inter RAO UES have concluded a contract on the supply of up to 875 billion cubic meters of gas. The contract envisages annual supplies of up to 35 bcm of Rosneft-produced gas to the power plants of Inter RAO beginning on January 1, 2016 and running through December 31, 2040 on a take-or-pay basis,” Rosneft said.
Rosneft’s gas supplies to RAO UES in 2016 will total 32.3 bcm, the company said, without disclosing the value of the deal.
Russian business media earlier reported the deal was estimated at 2.5 trillion rubles ($80.5 billion).
“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 utilization,” the company said.
The contract has been approved by the boards of directors of Rosneft and Inter RAO UES.