UPDATE: Rosneft, Transneft settle oil transportation dispute out of court

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MOSCOW, Feb 17 (PRIME) -- Russian oil major Rosneft and oil pipeline monopoly Transneft have settled their oil transportation dispute out of court, and agreed to decrease of the ratio of losses of oil in transportation, a Rosneft representative told PRIME on Friday.

“The dispute of two entities – Rosneft and Transneft – regarding the conditions of oil transportation services has been settled out of court during negotiations. An agreement to decrease the ratio of losses was reached,” the representative said.

A Transneft representative told PRIME that the two companies and Rosneft’s affiliate Bashneft have coordinated and signed 2017 oil transportation contracts on conditions similar to conditions provided to all other shippers.

According to documents of Transneft, Rosneft will pay 310.647 billion rubles for transportation of 183.499 million tonnes of oil in 2017.

Rosneft filed a suit against Transneft in late 2016. According to the case, Rosneft paid Transneft for oil transportation services for 2017, but the companies have not signed a corresponding agreement as they failed to coordinate its conditions. Transneft said that it had the right to suspend transit of Rosneft’s oil from January 1, 2017 without the signed contract.

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

(57.1507 rubles – U.S. $1)

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