Rosneft and China National Petroleum Corporation (CNPC) signed an amendment to the agreement envisaging additional supplies via Kazakhstan and the prolongation of the contract signed on June 21, 2013 till December 31, 2023, the Russian oil giant said in a press release.
Rosneft said deliveries from January 1, 2017 to December 31, 2023 would amount 70 million tonnes, whilst the total volume of the supplies (including 21 million tonnes delivered previously) will amount 91 million tonnes within a 10-year timeframe.
“Rosneft’s integrated cooperation in the energy area with Chinese partners is of strategic nature and covers all business domains – from upstream to refining and petrochemicals’ production, the Russian company said, adding that it has a successful track record of implementation of supply contracts to China,” Rosneft said in the press release on January 9.
From 2005 to 2016 within the long-term contracts, signed by Rosneft delivered more than 186 million tonnes of oil for to the amount of over $95 billion. The total volume of deliveries within long-term contracts will exceed 700 million tonnes. Additionally Rosneft is one of the leading suppliers of oil products to the Chinese market: from 2009 to 2016, Rosneft delivered c. 30 million tonnes of oil products amounting over $19 billion.
Together with CNPC Rosneft reminded that it implements the Tianjin refinery project. Currently the parties finalised the preparation of the feasibility study and approved the technological configuration of the refinery and a complex for the production of aromatic hydrocarbons. The annual throughput of the Tiajin refinery will be 16 million tonnes, of which 9.1 million tonnes will be the refining of ESPO blend, delivered by Rosneft. The refining depth will be c. 95%.
Jointly with China Petrochemical Corporation (Sinopec Group), Rosneft said it successfully operates a joint venture for the production of hydrocarbons – Udmurtneft. Its annual production exceeds 6.4 million tonnes (the biggest producer of the region).
In September, 2016 Rosneft and Sinopec signed within the Eastern Economic Forum a binding Agreement on a joint preliminary study of the project for construction and operation of a gas processing and petrochemical complex in East Siberia. The annual throughput of the Complex Train 1 is expected at 5 billion cubic metres of natural gas with the yield of up to 3 Mt of high-tech polymers and petrochemical products for sales primarily on Russian and Chinese markets. The project resource base comprises Rosneft oil and gas fields of the Yurubcheno-Takhomsky cluster in East Siberia.
In November, 2016 Rosneft and Beijing Gas signed a Purchase and Sale Agreement and a Shareholder and Operating Agreement for the sale of a 20% stake in Verkhnechonskneftegaz (a Rosneft subsidiary) to the Chinese company. This transaction will allow Rosneft to fully implement the significant development potential of the Verkhnechonsk field, including gas production, and to confirm the strategic partnership with one of the largest distributors of natural gas in China.
In December, 2016 Rosneft and the China National Сhemical Company (ChemChina) signed a Heads of Agreement on establishing a Joint Venture. According to the terms of the document, the parties will establish a joint venture in the Bolshoy Kamen priority development territory in Primorsky Krai, Russia, to build a plant and a polymer coatings and paints facility with an annual capacity of 50 thousand t. Additionally Rosneft and ChemChina are jointly development the FESCO project. The parties aim to create a joint venture for its implementation (the JV’s composition will be as follows: Rosneft – 60%, ChemChina – 40%), Rosneft said.