Rosneft and China National Petroleum Corporation (CNPC) signed a memorandum on expanding cooperation in the upstream sector. The document was signed by Rosneft’s President Eduard Khudainatov and General Director of CNPC Jiang Zemin within the Russian-Chinese energy dialogue held on November 22-23 in St. Petersburg.
Rosneft and CNPC will consider potential purchasing new offshore and onshore blocks through LLC Vostok Energy, a JV between Rosneft (51%) and CNPC (49%) established to operate upstream assets in Russia. A working group will be formed to study different opportunities.
During the meeting the heads of the companies also noted the progress in the cooperation in the downstream sector. As part of this cooperation, the parties signed a feasibility study agreement at the end of September, 2010 for construction of a refinery in Tianjin (China). The works within the project are carried out by the Chinese-Russian Eastern Petrochemical Company, a JV between CNPC (51%) and Rosneft (49%).
Speaking at the ceremony, the parties noted that the Memorandum maintains the principle of reciprocal cooperation, and thus propels Russian-Chinese cooperation in the oil sector to a new level.