Reliance, Roseneft Signed India’s Biggest Ever Oil Supply Agreement

SEATTLE (Oil Monster): A deal has been reached between Russian refinery leader Roseneft and Indian petrochemical giant Reliance Industries. According to the deal, up to 500,000 barrels of crude oil must be supplied daily. This is the biggest oil supply deal the two nations have ever had.

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The agreement is anticipated to provide Russia, which is under tremendous strain as a result of Western sanctions imposed on it after its invasion of Ukraine, with much-needed relief. Based on current oil prices, the agreement is worth about $13 billion. The contract has a ten-year term with the possibility of an extra ten-year extension. It should be mentioned that the agreement was reached shortly before Russian President Vladimir Putin is scheduled to travel to India in the early months of next year.

According to the deal, Roseneft will provide three cargoes weighing roughly 100,000 tons of fuel per month in addition to 20–21 Aframax-sized cargoes totaling between 80,000 and 100,000 metric tonnes of different grades of Russian petroleum.

After the European Union, India is now the biggest importer of Russian crude. By the way, according to trade data, almost one-third of the nation's energy imports come from Russian oil.