Russian oil and gas company to provide China with additional capabilities in oil and gas development projects

Almaty. May 17. Silkroadnews – In Beijing, at the round table of China National Petroleum Corporation (CNPC) within “One Belt, One Road” forum framework, Igor Sechin, the head of “Rosneft”, presented a report on interaction between Russia and China in energy and financial fields, the newspaper Kommersant writes.

“In 2016 Russia became a leader in crude oil supplies to China, providing almost 14% of Chinese imports. In the first quarter of 2017 the volume of Russian oil supplies to China grew by another 12% year on year. Over the last year China’s share in the structure of Russian oil exports reached 20.6%. Last year “Rosneft” delivered to China 34.5 million tonnes of oil (twice as much as three years earlier). Such results would be impossible without our partnership with CNPC purchasing 80% of all the oil “Rosneft” delivers to the People’s Republic of China”, the publication said quoting the report of I. Sechin.

“Rosneft” expressed its readiness to provide Chinese partners with additional opportunities to expand cooperation in oil and gas shelf development projects. I. Sechin also said about great prospects in exploration and production of hydrocarbons in close to China regions of Eastern Siberia, Yakutia and on the shelf of the Sea of Okhotsk. According to the head of “Rosneft”, oil and gas condensate production in the East of Russia reached 68.7 million tonnes last year, having increased by 39% throughout recent 5 years.

As the newspaper reminds, earlier “Rosneft” and CNPC signed an agreement extending the contract on oil transit through Kazakhstan for 5 years. The parties also agreed to increase fuel supplies by 56 million tonnes. Thus, throughout 2023, Russia will deliver more than 70 million tonnes of crude oil to China. “Rosneft” plans to increase oil exports to China up to 91 million tonnes over the next 10 years.