Russian oil giant Rosneft and CEFC China Energy Company have inked a strategic cooperation agreement for joint exploration and production in Western and Eastern Siberia.
The agreement signed during the ongoing BRICS summit in China also gives scope for a joint activity between the two companies in areas like refining, petrochemicals, crude oil and product trading.
Apart from that, Rosneft and CEFC have forged a contract for the supply of Russian crude oil, paving way for new opportunities for the strategic alliance.
Rosneft CEO Igor Sechin said: “We continue our work on strengthening the relationship with our strategic partners, including certainly CEFC, the largest Chinese private energy company, aiming for a long-term cooperation in all the areas of Rosneft’s business activity.
“The agreements signed today fully reflect the Company's strategy, which priorities includes strengthening the relations with the Asia Pacific countries and, in particular, with China.”
The contract is expected to result in a surge in direct supplies of crude oil to the strategic Chinese market, stated the Russian oil major. It will also provide a guaranteed cost-efficient export channel for the crude sales of Rosneft.
CEFC China president Chan Chauto said: “We are convinced that the Russian oil and gas sector has a tremendous potential and interested in an integrated cooperation with Rosneft.
“We will use our trading capability and build up the supply of Russian crude to the fast-growing Chinese market. In addition, we are planning joint investments in the strategically important projects in the Russian oil and gas sector.”
Rosneft says that the agreements are subject to its corporate approvals.
In July, Rosneft and CEFC had entered into a strategic cooperation agreement through which they plan to consider the possibility for establishing a vertically integrated joint venture in Russia. The objective of the agreement has been to execute oil and gas projects along with a joint investment fund.
