Trafigura Ltd. has become the latest trading house to supply financing to OAO Rosneft in return for a long-term supply deal, as the Russian oil company seeks to bolster its finances following its $55 billion acquisition of TNK-BP earlier this year.
The Trafigura agreement—along with a clutch of other deals announced Friday with trading, refining and petrochemical companies from China, Europe and Russia—furthers Rosneft's international expansion.
Rosneft has agreed to supply Trafigura with up to 10.11 million tons of crude oil and petroleum products over five years in return for a prepayment of $1.5 billion, the companies said.
The agreement followed deals with Glencore International GLEN.LN -0.51% PLC and independent energy trader Vitol to deliver a total of 67 million metric tons of crude oil over five years in return for a $10 billion prepayment.
The Rosneft deal will help Trafigura fulfill an ambition to expand in Russia and former Soviet republics, said Christophe Salmon, the company's chief financial officer for Europe, the Middle East and Africa.
Rosneft announced a string of other deals it had made to expand its reach in Europe and strengthen ties with China during the St. Petersburg International Economic Forum on Friday.
Rosneft completed a 25-year contract with China, agreed to in March, to deliver 365 million tons of oil to the country—a deal valued at $270 billion. It made a $7 billion deal to deliver eight million tons of crude to Poland's largest oil refiner,PKN Orlen SA, by 2016, and agreed to form a trading joint venture with Italian refining company,Saras.
