At the St. Petersburg International Economic Forum, Rosneft and China National Chemical Corporation (ChemChina) signed a contract for crude oil supplies to the company in China. The contract holds the delivery to China of 200 000 t of crude oil on a monthly basis for one year.
The agreement reportedly demonstrates the successful implementation of Rosneft strategy aimed at diversifying supplies to the region’s key customers. The contract will maximise the delivery’s economic efficiency, while forming the basis for further development of cooperations between Rosneft and ChemChina.
Also, within SPIEF-2015 the two companies signed a Memorandum of Understanding regarding the planned purchase by Rosneft of a 30% stake of ChemChina Petrochemical Co. Ltd. This document will see Rosneft’s analysis of CCP assets. It is assumed that the paying up of stocks will be performed from proceeds oil supplies to ChemChina. Also, the signed MoU forsees the cooperation in the area of oil, oil products and petrochemical trading, the joint participation if FECPO project realisation occurs.
The implementation of the terms of the MoU will allow Rosneft to significantly shore up its position in the Asia Pacific region and especially in China. Along with the construction of a refinery in China as part of a joint venture with Vostok Petrochemicals, the cooperation with ChemChina will allow Rosneft to obtain a new potential for the production and marketing of products along the whole value chain to the end customer.
Igor Sechin said, “the signed Memorandum confirms the level of trust with our Chinese partners. We are sure that together we will enhance efficiency of one of the best companies in the region. Moreover the formula of preliminary agreements do not assume the fund raising, on the other hand it lays the basis for uninterrupted deliveries of Rosneft’s products to CCP facilities.”
Edited from press release by Claira Lloyd
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