Transneft prolongs ’16 oil product deal with Rosneft for February

MOSCOW, Feb 1 (PRIME) -- Oil pipeline monopoly Transneft has prolonged a 2016 oil product pumping contract with oil producer Rosneft for February because the companies have failed to sign a deal for 2017, aide to the president of Transneft Igor Dyomin told PRIME on Wednesday.

“An agreement for oil product pumping for 2017 has not been signed with Rosneft as well (as the oil pumping deal). But naturally, we cannot stop the traffic. Which is why we did the following: prolonged the 2016 agreement for January. But since it’s February 1 today, an agreement with equal conditions has been made for February,” Dyomin said.

In December 2016, the court prohibited Transneft from suspending transit of Rosneft’s oil via the company’s pipelines because of the failure to sign an agreement for 2017. Rosneft now sues Transneft.

According to the materials of the case, Rosneft paid Transneft for transportation services for 2017, but the companies have not signed a corresponding agreement as they failed to coordinate its conditions. Transneft said that it has the right to suspend transit of Rosneft’s oil from January 1, if the contract is not signed.

Rosneft demanded that the contract terms be brought in compliance with law in their technical aspects, such assessment of technical oil losses and compensation for them. There is no price dispute between the companies.

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