Gazprom Neft, PetroVietnam sign oil supply contract
SOCHI. Nov 25 (Interfax) - Gazprom Neft CEO Alexander Dyukov and PetroVietnam chief Nguyen Xuan Son have signed a contract on supplies of ESPO grade crude oil from Russia.
Russian President Vladimir Putin and Vietnamese Central Committee General Secretary Nguyen Phu Trong were present at the document signing ceremony.
The agreement covers long-term supplies of crude to Vietnam's Dung Quat oil refinery, a Gazprom Neft spokesman said. The contract covers deliver of ESPO grade oil from the Russian port of Kozmino. The price is calculated under an agreed formula that provides for adjustments depending on the market situation.
Advisor to the Transneft president Igor Dyomin told Interfax that the contract represented a shift away from deliveries at spot prices. The volumes are on a par with those Gazprom Neft applied to deliver for next year, Dyomin said without providing a figure.
It was reported earlier that Gazprom Neft might deliver up to 6 million tonnes of oil on the Eastern Siberia-Pacific Ocean (ESPO) pipeline beginning in 2016.
Gazprom Neft is also in talks to buy a 49% stake in the Dung Quat refinery. According to the draft intergovernmental agreement between Russia and Vietnam, Gazprom Neft is to supply crude oil via ESPO and the oil terminal at the port of Kozmino (3 million tonnes in 2015, 3.6 million tonnes in 2016 and 4.8 million tonnes in 2017, and no less than 6 million tonnes in 2018 and thereafter).
