Tyumen To Supply BP with Crude
Tyumen Oil Co. has signed an agreement to sell crude oil to BP subsidiary BP Oil International over a 10-year period.
Tyumen Oil will sell 1.65 million metric tons to BP Oil International as part of financing arrangements for the reconstruction of the Ryazan refinery, Tyumen Oil's main refinery, located 120 miles southeast of Moscow. The reconstruction, carried out by ABB Global Lummus, is financed through loan guarantees provided by the US Export-Import Bank.
"Tyumen Oil and BP have been working closely together on a number of projects, and this oil supply agreement represents a further expansion of our relationship," said Joseph Bakaleinik, Tyumen Oil's chief financial officer. The two companies are partners in Russia's Sidanko oil company and RUSIA Petroleum natural gas company.
"This long-term contract with Tyumen Oil will further consolidate BP's leadership in the Russian crude oil market and will help satisfy the crude oil needs of our refineries," said Anders Morland, the president of BP Russia.