Total and Rosneft signed a Term Sheet that envisages the main terms and conditions of the purchase of 16.67% share in a refinery located in Schwedt, Germany (PCK Raffinerie GmbH). The document was signed in Sochi by the Head of Rosneft Igor Sechin and Chief Executive Officer of Total Patrick Pouyanne.

The deal represents a deepening of the energy partnership between Russia and Europe based on the effectiveness of supply of a refinery located along the Druzhba pipeline. Total and Rosneft are further agreeing on an off-take agreement to supply Total's retail and wholesale customers securing stable supply to the premium Berlin and surrounding areas, markets and customers supplied by pipeline from the refinery.

Commenting on the signing Igor Sechin said: “This agreement is reflective of the level of trust, long-term commitment and mutual benefit in the relationships between Total and Rosneft. It proves the effectiveness of the European-Russian energy partnership in that it delivers added value to all companies and countries involved. As for Rosneft, this deal means a strengthening of its position in one of Europe's most efficient and effective refineries and an opportunity to serve the end-customers in its most important market. Once the deal is closed, Rosneft together with ROG will manage close to 55% of the refinery's ownership”.

About PCK Refinery

PCK Raffinerie GmbH refinery is located in the city of Schwedt/Oder in Brandenburg, Germany. Primary distillation capacity is 11.5 mln/t. Nelson index – 9.2. Shareholders: 37.5% ROG, 37.5% Shell, 16.67% Total, 8.33% Eni.

Technical-and-economic indexes of PCK refinery are one of the best in Europe.

In 2013 the overall Rosneft crude oil supplies to Germany accounted to 23.3 mln tones, which is 26% of all oil import of Germany.

In May 2011 Rosneft acquired a 50% share in Ruhr Oel GmbH (ROG) in Germany. ROG holds a share in 4 refineries in Germany (Gelsenkirchen – 100%, Bayernoil – 25%; MiRO – 24%; PCK– 37,5%). Moreover the joint venture holds stakes in 5 pipeline and sea crude oil terminals in the North, Baltic, Mediterranean and Adriatic Seas. Rosneft partner in the JV on a parity basis is BP Europa SE. ROG is the leader of German market in terms of refining volumes – 21.2 mln tones in 2013.

About Rosneft

Rosneft is a Russian oil industry leader and the largest public oil and gas company in the world. Rosneft’s main operations are exploring for and producing oil and gas and producing and selling petroleum products and petrochemicals.

Rosneft is the world’s largest company by proved liquid hydrocarbon reserves as well as the undisputed leader by hydrocarbon resources among publicly traded oil and gas companies.

See the site of Schwedt refinery