Rosneft and CEFC sign agreement for supply of Russian crude oil
Russian oil major Rosneft has signed both a strategic cooperation agreement and a contract with CEFC China Energy Company for the supply of Russian crude oil.
The agreement was signed at the ninth BRICS summit and suggests the development of joint exploration and production projects in Western and Eastern Siberia.
Furthermore, the companies will carry out joint activities in such areas as refining, petrochemicals and crude and product trading as part of the agreement.
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 includes priorities of strengthening the relations with the Asia Pacific countries and, in particular, with China."
Rosneft and CEFC also signed a contract for the supply of Russian crude oil, which is expected to open up new opportunities for the partnership.
Following the contract, direct supplies of crude oil to the strategic Chinese market will increase, thereby ensuring a cost-efficient export channel for the company's crude sales.
CEFC China president Chan Chauto said: "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."
The agreements are subject to corporate approvals of Rosneft.