In its attempts to seek an amount of $55 billion required for the funding of its acquisition of TNK-BP, Russian crude producer Rosneft has worked out a $50 billion advance-payment oil supply deal with trading firms Glencore International and Vitol Group, and has also raised loans from global banks. As a result, the company has raised $67 billion in all, for the TNK-BP acquisition.

According to a statement by the state-run company, two loan deals for $16.8 billion have been signed with international banks for purchasing BP's 50 percent share of what was once the Russian-British consortium TNK-BP.

Under the credit agreements with the banks, Rosneft will first receive a $4.1 billion loan which will last five years; and the second loan of $12.7 billion for two years.

Meanwhile, the five-year oil supply agreement with Glencore and Vitol will involve the shipping of a total of 67 million tonnes of oil; with the supplies scheduled to commence in 2013. It is quite likely that Rosneft may be allowed to replace crude volumes with oil products.

Despite the fact that the financial terms of the oil-supply agreement remained undisclosed by Rosneft President Igor Sechin, the revelation that the "the price formula is in line with the prices that Rosneft receives for crude at medium-term tenders" implies that, at an oil price of $100 per barrel, the deal for 67 million tones will be worth $50 billion.