TNK-BP and Transaero Airlines have signed a long-term jet fuel supply agreement to improve the efficiency of the companies’ operations and further develop Russia’s oil product market.
The key provision of the agreement is the use of a price formula to determine the supply price, with the formula being based on the indicative European jet fuel quotes published by Platts, a leading global provider of energy and raw material commodities information. The Platts index is recognized as a benchmark by major companies operating in global markets. The Platts Index gives TNK-BP customers access to a wide range of advanced financial instruments, which enable them to effectively minimize risks related to the high volatility of oil and oil products prices.
Supplies under the agreement are expected to exceed 90 thousand tonnes in 2011. Transaero aircraft fueling services will be provided by “Toplivozapravochny kompleks Sheremetyevo”, the operator of jet fuel storage and into-wing fueling services at Sheremetyevo International Airport.
“As one of the top jet fuel suppliers to the Russian market, TNK-BP is interested in developing a transparent competitive environment and establishing long-term relations with major air carriers,” said Dmitry Ustinov, Vice President, Business Marketing and New Business Development, TNK-BP. “I’m confident that our mutually beneficial cooperation with Transaero will contribute to making the jet fuel market more efficient and predictable.”
Transaero Airlines General Director Olga Pleshakova stressed the following: “Entering into an agreement with TNK-BP is an important step in Transaero’s fundamental policy to expand direct long-term ties with Russia’s major jet fuel producers. Constructive cooperation with TNK-BP will ensure Transaero’s still greater efficiency in planning its tariff policy in the interests of making air travel affordable to its passengers.”
Information for editors:
TNK-BP is the third largest oil company in Russia and is equally owned by BP and the AAR Consortium (Alfa Group / Access Industries / Renova). TNK-BP also owns approximately 50% of the Russian oil and gas company Slavneft. TNK-BP accounts for approximately 16% of Russia’s oil production (including TNK-BP’s share in Slavneft). As of 31 December 2010, the company’s total proven reserves on a SEC (US Securities and Exchange Commission) life-of-field basis amounted to 8.794 bn boe.
TNK-BP currently produces 1 mln 400 t of jet fuel per annum (at its Ryazan and Yaroslavl Refineries) and has plans for a 30% increase in jet fuel production for 2013-2016.
Transaero Airlines launched its services in November 1991. It is the second largest air carrier in Russia. According to an international rating, it belongs to the World’s Top 10 Safest Airlines. The company ranks eighth among world air carriers that serve tourist and recreation routes.
Transaero has the largest long-haul wide-bodied fleet in Russia, the CIS and Eastern Europe and is the only carrier flying Boeing 777 and Boeing 747 passenger aircraft in the region.
Transaero serves more than 130 routes in Russia, Europe, Asia, Americas and Africa.
For further information please contact:
Public Affairs Division: Tel.: (495) 363-2757
Transaero Airlines Press Service
Tel. +7(495) 937-8477