Gunvor Clinches Big Oil Deal with Russia’s Rosneft

January 15, 2021 09:39 PM AEDT | By Hina Chowdhary

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Gunvor Clinches Big Oil Deal with Russia’s Rosneft

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Summary

Gunvor has won a big tender for the first time in eight years from Russia’s largest oil firm Rosneft and will procure 9 million tonnes of petroleum products

Competitors of Gunvor also managed to forge a deal with Rosneft, Trafigura would be handling 15-18 million tonnes of oil products

Gunvor, one of the world's largest independent commodities trading houses, has won a big tender for the first time in eight years from Russia’s largest oil firm Rosneft. The Switzerland-based trading house is expected to carry out large volumes of trade of Russian oil products in 2020. Gunvor was eager to seal the Russian deal in order to honour its supplies orders.

According to Reuters reports, Gunvor is expected to receive 9 million tonnes of oil products from Rosneft. Trafigura and BP along with Gunvor are among the prominent oil lifters for Rosneft in 2021. However, no official announcement has been made from any of the companies so far.

(Image source: ©Kalkine Group 2020)

Also read: BP To Expand Its Oil Production in the Middle East

Gunvor aspires to rank itself among the world’s largest gas traders by expanding its global footprint through acquiring several oil refineries across Europe. Gunvor’s trade in Russian fuels fell from 7 per cent of its total volumes in 2019 to 5 per cent in 2020. The Swiss trading house also divested from most of its Russian assets.

Also read: Why is BP (LON:BP) expanding renewable energy supply to Amazon?

According to the latest deal with Rosneft, Gunvor also has the right to lift 1.5 million tonnes of petroleum products (alkylates and naphtha) from the Baltic Sea port (Ust-Luga, Russia). Gunvor is expected to lift 3.5 million tonnes of vacuum gas oil from other Black Sea’s ports along with Tuapse, apart from loading diesel and marine fuel from Russia’s Far East.

Gunvor’s competitor Trafigura would be handling 15-18 million tonnes of oil products as it took a major chunk of Rosneft’s oil product tenders for 2021, according to some media reports. BP Plc (LON: BP.), the FTSE 100-listed oil giant, will be lifting more than 5 million tonnes of fuel oil from Rosneft.

Rosneft’s flagship project Vostok Oil, located in Arctic and East Siberia, is estimated to have 6 billion tonnes of oil and gas reserves. Industry rival Trafigura has forged a deal with Rosneft to buy a 10 per cent stake in its Vostok Oil project.

Gunvor is also expected to buy a stake in the Rosneft flagship asset to bolster its supplies for the times to come.

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