Rosneft and ChemChina sign cooperation agreement

Rosneft and China National Chemical Corporation (ChemChina) have signed a Heads of Agreement on cooperation in equity investment in ChemChina Petrochemical Corporation (CCPC) and a Memorandum of Understanding on the project of the Far-East Petrochemical Company (FEPCO).

The CCPC agreement covers Rosneft’s planned subscription for a 30% stake in CCPC and the FEPCO memorandum concerns ChemChina’s proposed acquisition of a majority stake in FEPCO project.

Rosneft and ChemChina also signed a memorandum that agreed to the supply crudes and other feedstocks to CCPC ESPO. According to the document, the parties will hold negotiations on signing a long-term contract for 4 million t to be delivered within three years with an option to extend supplies and increase the contract duration. Delivery of the signed documents will enable Rosneft to significantly enhance its positions on the Asia-Pacific region energy market and China in particular. Cooperation with ChemChina will enable Rosneft to obtain a brand new opportunity to produce and market its products in each segment of the value chain through to the end consumer.

“The achieved agreements are indicative of a special level of cooperation with out Chinese partners. Joining efforts will further improve efficiency of out work by developing cooperation in all areas including such strategically important projects as FEPCO,” commented Igor Sechin, Chairman of Rosneft Management Board.

Edited from press release by Angharad Lock

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/04092015/rosneft-and-chemchina-sign-cooperation-agreement-1348/