Company news in April 2010 | |||
TNK-BP Signs Diesel Sale Contract Using Price Formula
TNK-BP signed the first domestic oil products sale contract using a price formula mechanism on the off-exchange market. The price formula is based on quotes from the Platts oil agency.
The first contract is for delivery of 5,000 tons of diesel to a retail company operating in central Russia. The price formula system guarantees that the buyer will receive the agreed volume at the market price.
“This year TNK-BP has become the first Russian oil company to use a price formula for diesel sales on the domestic market. We’ve succeeded in signing our first contract for future delivery at a price based on a Platts quotation. We hope that as exchange trading of oil products develops in Russia futures contracts will become more common thus creating a more liquid contracting system for future deliveries ”, said TNK-BP’s Vice President for Sales, Trading and Logistics Jonathan Kollek.
Information for Editors
TNK-BP is the third biggest oil company in Russia and is equally owned by BP and the AAR Consortium (Alfa Group / Access Industries / Renova). TNK-BP also owns around 50% of Russian oil & gas company Slavneft. TNK-BP produces around 16% of Russia’s oil output (Including TNK-BP’s share in Slavneft). As o f 31 December 2009, the company’s total proven reserves under SEC rules without taking account of license cut-off amounted to 8.586 bln boe.
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