Russia's state-run Rosneft and China National Petroleum Corp. have signed a memorandum of understanding to expand cooperation in hydrocarbons exploration and development, which envisages possible purchase of new assets offshore and onshore Russia, the oil producer said late Monday.
The document was signed by Rosneft's President Eduard Khudainatov and CNPC General Director Jiang Zemin, at a Russia-China energy dialogue in St Petersburg.
Under the MOU, the parties will consider the possibility of acquiring new assets by Vostok Energy, a joint venture between Rosneft (51%) and CNPC (49%) set up for upstream projects in Russia, Rosneft said in a statement.
"The parties are to establish a working group, which will study possible options for the JV to develop offshore and onshore projects," it said.
The MOU allows "maintaining a mirror principle of cooperation and brings the mutual work by Russia and China in the oil sector to a new level," Rosneft said.
The parties also noted "progress in the cooperation between Rosneft and CNPC in the downstream sector," the Russian company added.
CNPC holds a 51% interest in the China-Russia Eastern Petrochemical Company, through which the two cooperate in the downstream sector in China. Rosneft owns the remaining 49% in the joint venture.
In late September, the two companies signed an agreement to conduct the front-end engineering design study for a refinery to be built jointly near Tianjin in northern China and held a groundbreaking ceremony to mark the start of the construction.
The construction of the 260,000 b/d refinery is estimated to cost $5 billion and is scheduled for completion by 2015.
The parties also plan to develop a retail network of around 500 service stations in the region.
Rosneft is to supply up to 70% of crude to the refinery, with CNPC to supply the remaining 30%.
In 2007, Vostok Energy bought two licenses to explore and develop the Zapadno-Chonsky and Verkhneichersky hydrocarbon blocks in the East Siberian Irkutsk region, marking the start of cooperation in the Russian upstream sector.
The blocks, with combined resources estimated to hold 80 million mt (or 584 million barrels) of crude and 105 billion cubic meters of gas, are located nearby already producing major oil fields such as Verkhnechonsk, developed by TNK-BP and Rosneft, and Talakan, developed by Surgutneftegaz.
The both fields are sources for Russia's new export blend ESPO being exported via the East Siberia-Pacific Ocean pipeline mainly to Asian markets.
The document was signed by Rosneft's President Eduard Khudainatov and CNPC General Director Jiang Zemin, at a Russia-China energy dialogue in St Petersburg.
Under the MOU, the parties will consider the possibility of acquiring new assets by Vostok Energy, a joint venture between Rosneft (51%) and CNPC (49%) set up for upstream projects in Russia, Rosneft said in a statement.
"The parties are to establish a working group, which will study possible options for the JV to develop offshore and onshore projects," it said.
The MOU allows "maintaining a mirror principle of cooperation and brings the mutual work by Russia and China in the oil sector to a new level," Rosneft said.
The parties also noted "progress in the cooperation between Rosneft and CNPC in the downstream sector," the Russian company added.
CNPC holds a 51% interest in the China-Russia Eastern Petrochemical Company, through which the two cooperate in the downstream sector in China. Rosneft owns the remaining 49% in the joint venture.
In late September, the two companies signed an agreement to conduct the front-end engineering design study for a refinery to be built jointly near Tianjin in northern China and held a groundbreaking ceremony to mark the start of the construction.
The construction of the 260,000 b/d refinery is estimated to cost $5 billion and is scheduled for completion by 2015.
The parties also plan to develop a retail network of around 500 service stations in the region.
Rosneft is to supply up to 70% of crude to the refinery, with CNPC to supply the remaining 30%.
In 2007, Vostok Energy bought two licenses to explore and develop the Zapadno-Chonsky and Verkhneichersky hydrocarbon blocks in the East Siberian Irkutsk region, marking the start of cooperation in the Russian upstream sector.
The blocks, with combined resources estimated to hold 80 million mt (or 584 million barrels) of crude and 105 billion cubic meters of gas, are located nearby already producing major oil fields such as Verkhnechonsk, developed by TNK-BP and Rosneft, and Talakan, developed by Surgutneftegaz.
The both fields are sources for Russia's new export blend ESPO being exported via the East Siberia-Pacific Ocean pipeline mainly to Asian markets.
