Rosneft signs amended deal to increase oil supplies to China

Russian state-owned oil company Rosneft has signed an amendment to the agreement with China National Petroleum Corporation (CNPC) to increase oil supplies to China through Kazakhstan.

The original contract was signed in 21 June 2013 and has now been extended until 31 December 2023.

Under the amended contract, deliveries will amount 70 million tonnes, while the total volume of the supplies (including 21 million tonnes delivered earlier) will amount 91 million tonnes within the ten year period.

Rosneft share integrated cooperation with various Chinese partners in the energy sector that includes upstream to refining and petrochemical production.

From 2005 to 2016, Rosneft delivered more than 186 million tonnes of oil to China through long-term contracts.

Furthermore, within the 2009-2016 period, this company delivered around 30 million tonnes of oil products to the Chinese market.

Collaborating with CNPC, Rosneft is also building the Tianjin refinery project. This joint venture has currently finalised the feasibility study preparation and approved the technological configuration of the refinery.

After completion, the refinery will have a capacity of 9.1 million tonnes.

Last November, Rosneft signed a Purchase and Sale Agreement and a Shareholder and Operating Agreement to sell 20% stake of Verkhnechonskneftegaz, a subsidiary of Rosneft to Beijing Gas.

The sale will help Rosneft to implement the significant development potential of the Verkhnechonsk field and also to build a strategic partnership with Beijing Gas.

Rosneft also signed a Heads of Agreement with China National Chemical Company last December.

As part of the deal, a joint venture will be formed to build a plant and a polymer coatings and paints facility in Primorsky Krai, Russia.