Rosneft said Tuesday that on March 22 it signed a number of agreements with Chinese companies as part of the visit of the Chinese delegation to Russia. Rosneft also acted as an authorized representative in accordance with the agreements signed by Russian and Chinese governments.
Igor Sechin, Rosneft President and Chairman of the Management Board, signed a number of agreements with Zhou Jiping, President of China National Petroleum Corporation (CNPC).
Rosneft and CNPC are authorized to implement today’s agreement between Russia and China to expand cooperation in crude oil trading. In line with the agreement Rosneft and CNPC signed heads of terms of crude supplies with prepayment, which envisage contracts on additional supplies via the Skovorodino-Mohe pipeline over the next 25 years. It is planned to increase the supplies this year after the intergovernmental agreement comes into force.
The parties signed Strategic cooperation agreement in hydrocarbon exploration, production and sales. Rosneft and CNPC also acted as authorized representatives in the framework of the intergovernmental agreement on cooperation in construction and running of the Tianjin refinery as well as exploration and production projects.
Igor Sechin, Rosneft President and Chairman of the Management Board and Fu Chengyu, Chairman of China Petrochemical Corporation (Sinopec Group) signed a protocol on comprehensive cooperation which envisages expanding partnership in exploration and production of hydrocarbons, refining and petrochemical industry, processing LPG as well as supplies of crude and petroleum products (and possibly LPG over the longer term) to China. The protocol envisages contracts on oil exports.
Furthermore, the companies confirmed their intention to continue joint exploration works in the Udmurt Republic and assess prospects of onshore gas production on the Severo-Veninskoye deposit (Sakhalin-3) and consider conditions of Sinopec possible participation in the large-scale project of Rosneft in the Far East, the Eastern Petrochemical Company.
During the signing ceremony the parties noted positive results of joint work on Udmurtneft and Sakhalin-3 projects. The companies consider the Udmurtneft project, in which Sinopec is a strategic partner, as a model of cooperation in the energy sector. As part of the Sakhalin-3 project Rosneft and Sinopec carry out joint exploration works at the Veninsky license block on the Sakhalin shelf.
Igor Sechin also signed an agreement for a $2 billion loan facility with China Development Bank President Zheng Zhijie. The long-term loan will be used, among other things, to develop the infrastructure of the Vankor field (that ensures crude supplies to China under the long-term contract) and to implement Rosneft gas program.