July 29, 2020 / 9:27 AM / 14 days ago

Russia's Rosneft to supply fuel to Nornickel after Arctic spill

FILE PHOTO: A view shows a helmet with the logo of Rosneft company in Vung Tau, Vietnam April 27, 2018. REUTERS/Maxim Shemetov/File Photo

MOSCOW (Reuters) - Russian oil major Rosneft will supply fuel to the Arctic mining operations of Norilsk Nickel (Nornickel), the companies said on Wednesday, while Nornickel upgrades its fuel tanks after a diesel spill.

The spill occurred on May 29 after one of Nornickel’s fuel tanks lost pressure and leaked 21,000 tonnes of diesel into rivers and subsoil near the city of Norilsk in Siberia.

“The terms of cooperation between Rosneft and Nornickel will be stipulated in contracts that will require the parties to adhere to the highest standards of environmental safety,” they said in a joint statement.

This cooperation “will make it possible for Nornickel to free up a significant share of its local tank farm for a comprehensive survey, to modernise local infrastructure, and to implement necessary measures to improve the reliability of its fuel storage capabilities,” it added.

Under the deal, Rosneft will supply up to 123,900 tonnes of petroleum products to Nornickel’s mining operations between October and April.

Supplies will be transported from Rosneft’s Arkhangelsknefteprodukt terminal by Nornickel’s vessels through the Northeast Sea route.

Reporting by Polina Devitt; Editing by Louise Heavens and Edmund Blair

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