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. Last Updated: 07/27/2016

Sibneft Signs Deal to Ship to Europe

No. 5 oil producer Sibneft has signed a long-term deal with Royal Dutch/Shell, BP and TotalFinaElf to supply them with crude in Germany, trading sources said Monday.

They said the deal was part of a five-year, $450 million credit deal between Sibneft and Western banks in which crude exports were used as collateral.

Traders said Sibneft would start exporting from July up to 100,000 tons (25,000 barrels per day) of crude to Germany through the Druzhba pipeline.

The three Western oil majors will decide whether the crude will stay in Germany on their refineries or travel further.

Sibneft said last Friday it would borrow $450 million to boost investments.

Citibank, Schroder Salomon Smith Barney, BNP Paribas and Westdeutsche Landesbank will act as mandated arrangers.

Raiffeisen Zentralbank and Natexis Banques Populaires will act as lead arrangers.