TNK-BP Signs Diesel Sale Contract Using Price Formula

The first contract is for delivery of 5,000 tons of diesel to a retail company operating in central Russia. The price formula system guarantees that the buyer will receive the agreed volume at the market price.
“This year TNK-BP has become the first Russian oil company to use a price formula for diesel sales on the domestic market. We’ve succeeded in signing our first contract for future delivery at a price based on a Platts quotation. We hope that as exchange trading of oil products develops in Russia futures contracts will become more common thus creating a more liquid contracting system for future deliveries ”, said TNK-BP’s Vice President for Sales, Trading and Logistics Jonathan Kollek.