Rosneft and Socar Turkey Enerji AS Signed a Heads of Terms on Oil and Oil Products Supply

The parties will explore the potential of cooperation in the framework of the new 10 mmt STAR refinery being constructed by SOCAR Turkey Enerji. The Companies will consider Rosneft products supply to this enterprise, in particular oil and other feedstock. The range of products, as well as the size and timing of deliveries will be specified in the legally binding documents to be signed by the parties in the medium term.

Turkey is a net importer of oil (in 2015, oil imports grew by 43% YoY to 25.1 million tons due to an increase in demand from the refineries of the country). The development of oil refining of the country represents a significant commercial opportunity for the trading arm of the Company which may take part in the supply of the feedstock to the enterprise being under construction. Rosneft is pursuing its strategy aimed at strengthening its position in the energy sector in the region through assets acquisitions and joint ventures setup. Thus the expansion of cooperation with Turkish companies will provide a synergistic effect with Rosneft’s international operations.