Rosneft to sign agreement with CNPC on joint development of onshore fields
MOSCOW. Sept 4 (Interfax) - Rosneft will sign a host of agreements with China National Petroleum Corporation (CNPC) during the G20 summit in St. Petersburg, the Russian oil giant said in a statement.
The agreements will cover joint projects in hydrocarbon production and transportation and formation of joint ventures to develop onshore fields in Russia, the statement says.
One of the agreements concerns the project to build the Tianjin oil refinery in China.
Rosneft President Igor Sechin will be at the G20 summit, where he will take part in a bilateral meeting between Russian President Vladimir Putin and Chinese President Xi Jinping on September 5. Sechin is also scheduled to hold a number of working meetings with colleagues from G20 member countries.
CNPC and Rosneft plan to jointly develop eight onshore sections in Russia, in Irkutsk region, Krasnoyarsk territory and Nenets autonomous district.
The Vostok Petrochemicals joint venture (49% owned by Rosneft and 51% by CNPC), signed an agreement on the feasibility study for construction of the Tianjin refinery in 2010 and held the groundbreaking ceremony on construction of the refinery. The entire project is expected to cost $5 billion.
The refinery was expected to process 13 million tonnes of oil per year, including about 9 million tonnes of Russian crude. The light oil products yield was expected to be more than 80% at the new plant. The target markets for the oil products are Northern China and the Central Plains region (including Beijing, Tianjin, and the provinces of Hebei, Shanxi, Henan and Shandong), as well as the coast of Eastern China.
However construction was never started because of the poor economics of the project. In 2012, Russia and China began negotiations to extend a number of preferences to the project, including the right to independently import oil and export products, and sell oil products on the Chinese market, among other things.