Rosneft's Sechin to discuss oil deliveries, cooperation outlook in China
MOSCOW. Aug 29 (Interfax) - Rosneft President Igor Sechin will meet in China with the leadership of China National Petroleum Corporation (CNPC) to discuss oil deliveries from Russia and the outlook for future cooperation, the Russian company said in a statement.
The companies will discuss the development of cooperation in geological exploration projects at onshore fields in Russia and on the Russian shelf.
Sechin has already met with the leadership of Sinopec and discussed the state of current joint projects, including Sakhalin-3 (Veninsky block) and operations at Udmurtneft , which they jointly control. In addition, they touched on the prospects for further cooperation in geological exploration, hydrocarbon production and refining.
Russia currently delivers 15 million tonnes of oil a year to CNPC on the Eastern Siberia-Pacific Ocean (ESPO) pipeline spur to China (Skovorodino-Mohe), of which Rosneft supplies 9 million tonnes and Transneft - 6 million tonnes.
Russia concluded a new agreement with China in March 2013 providing for a possible increase in the oil deliveries to 31 million tonnes a year. At the end of June and pursuant to the interstate agreement, Rosneft and CNPC, signed a long-term prepayment contract, and a contract on delivery of oil to plants in China, totaling 360 million tonnes worth $270 billion. Rosneft plans to deliver an additional 800,000 tonnes of oil to China in 2013 and an additional 2 million tonnes in 2014.
Rosneft ultimately plans to increase oil deliveries on the ESPO spur to China to 25 million tonnes, the Russian oil giant said in a presentation for its IFRS financials.