Rosneft, CNPC Sign Memorandum for Upstream in East Siberia

Russia and China strengthened their ties in the energy sector on Friday, with Rosneft and China National Petroleum Corporation (CNPC) signing a Memorandum to expand cooperation in upstream projects in East Siberia.   

“The development of East Siberia resource base will create additional opportunities for supplies to current and future refineries of Rosneft, including Komsomolsk refinery, Far East Petrochemical Company and Tianjin refinery, which will help meet growing demand for petroleum products in East Siberia and the Far East, as well as increase exports to China and Asia-Pacific region,” Rosneft President Igor Sechin commented in a note.

According to the Memorandum, Rosneft and CNPC will team up starting with the development of Srednebotuobinsk field, which will ‘serve as foundation for the future Joint Venture.’

Rosneft will hold 51% stake in the JV, while CNPC the remaining 49%.

The Memorandum cements the relationship between the two countries, after the long-term strategic partnership agreed in September by CNPC and Gazprom. The two companies agreed on pipeline gas supply from Russia, defining also export volume and starting date.