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CNPC in Russia

Oil and gas cooperation between CNPC and Russia's oil sector began since 2003. CNPC also provides oilfield services and engineering and construction services in Russia.
  • Oil and Gas Operations
  • Oilfield Services, Engineering and Construction
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  • Major Events

Cooperation in the oil and gas business between CNPC and its Russian counterparts has been deepening over the years. From 2003 to 2006, CNPC signed agreements with Sakhalin Energy, Lukoil and Rosneft in the fields of oil trade, petroleum exploration and development, and oilfield service and engineering.

In October 2006, CNPC and Rosneft jointly established Vostok Energy Ltd., in which CNPC has a 49% stake. In August 2007, Vostok Energy Ltd. won an auction for licenses to explore for oil and gas in two eastern Siberian blocks in North Irkutsk Province of Russia — Verkhneichersky and West Chonsky. We completed drilling and encountered oil and gas shows in exploration well West Chonsky-1 in 2010.

In 2009, CNPC signed agreements with Rosneft and Transneft respectively for long-term crude trade. In 2010,we inked a framework agreement with Gazprom to import natural gas to China, an agreement with Rosneft on extending oil supply to the Russia-China Crude Pipeline, and an agreement with LUKoil on expanding strategic cooperation. Our 13 Mt/a joint veture refinery with Rosneft was inaugurated in Binhai New District of Tianjin in September 2010.

In 2013, major breakthroughs were made in bolstering the upstream cooperation with our Russian counterparts. An MOU was signed with Rosneft on expanding upstream cooperation in eastern Siberia and establishing a JV company to develop oil and gas fields in the Far East. Meanwhile, CNPC joined the Novatek's Yamal LNG Project with a 20% stake.

In 2014, we signed a contract with Russia's Novatek to purchase 3 million tons of LNG annually from Yamal for 20 years. In November, CNPC and Rosneft signed a cooperation framework agreement on the Vankor Oilfield project, marking a new breakthrough in upstream cooperation.

In 2015, the Yamal LNG project was launched and progressed smoothly. 

CNPC provides engineering and oilfield service, including geophysical prospecting and pipeline construction.

In January 2015, CPOE commenced construction of MWP4 and FWP5 engineering packages for the Yamal Project at the Qingdao base. By the end of 2015, FWP5 was completed and MWP4 proceeded smoothly. Following these packages, CPOE won the bidding for MWP10A and FWP1D engineering packages and contracted reels for MWP8 and spray painting for MWP1 as part of the Yamal Project, becoming the subcontractor involved in most engineering packages in the project.

In 2016, the Qingdao base completed the construction and delivery of MWP4, MWP10A and FWP1D project packages. In addition to the previously concluded FWP5 project package, we have delivered all Yamal LNG modules as contracted.

Russia-China Crude Pipeline

In 2008, CNPC and Transneft signed an agreement in principle on the construction and operation of the Russia-China Crude Pipeline. According to the agreement, China and Russia will jointly construct and operate the pipeline based on the Phase I project of Russia's Far East Pipeline.

The pipeline starts at Skovorodino off-take station in Russia and ends at Daqing terminal station in China. With a designed annual capacity of 15 million tons, the pipeline is about 1,000 kilometers long, including 63.4 kilometers in Russia and 933 kilometers in China.

Construction of the Russian section and Chinese section (Mohe-Daqing) began in April and May, 2009, respectively. The pipeline was completed in September 2010.

In June 2013, a purchases and sales contract was signed with Rosneft to increase oil deliveries to China under the condition of advance payment. Under the agreement, Rosneft will increase annual crude transportation to China via Russia-China Crude Pipeline from the current 15 million tons to 30 million tons by 2018, with a contract term of 25 years, 5 years prolongable.

The Second Russia-China Crude Pipeline

The Second Russia-China Crude Pipeline runs from Mohe in Heilongjiang Province through Inner Mongolia to Linyuan in Daqing. Running parallel to the First Russia-China Crude Pipeline, it has a total length of 951km, pipe diameter of 813mm, designed pressure of 9.5-11.5MPa, and an annual transmission capacity of 15 million tons.

Construction of the pipeline commenced on July 20, 2016 and it is expected to be completed by the end of October 2017. According to our contract with Rosneft, the crude supply from Russia to China will be increased by 15 million tons annually through the Second Line upon its commercial operation in January 2018.

Eastern Route of Russia-China Gas Pipeline

The Eastern Route of Russia-China Gas Pipeline runs from the Kovykta Gas Field in Irkutsk Oblast of East Siberia and the Chayanda Gas Field in the Sakha Republic, and enters China at the Russia-China border at Heihe, Heilongjiang Province, before running through eight provinces, municipalities and autonomous regions such as Heilongjiang, Jilin and Inner Mongolia and ending in Shanghai. Construction of the 2,680km-long Russian section started on September 1, 2014. Construction commenced of the 3,170km-long Chinese section of the eastern route in Heihe, Heilongjiang Province, on June 29, 2015.

The eastern route is expected to be completed and become operational in 2018. According to a gas purchase and sales contract with CNPC, Gazprom will export gas to China via the route for 30 years since its commencement of operation, with the delivery gradually increasing to 38 billion cubic meters per year.

The eastern route is one of the underpinning projects of China's Belt and Road Initiative. Its construction and operation will drive the development of infrastructure and associated industries, which will create job opportunities and boost the local economy along its route.

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We focus on whole-process environmental management in our major construction projects. In 2014, six projects, including the Mohe-Daqing Section of Russia-China Oil Pipeline, passed the acceptance inspection of the Ministry of Environmental Protection of the People's Republic of China.

Excellent Project Construction and Environmental Protection in Mohe-Daqing Section of Russia-China Oil Pipeline.

The Mohe-Daqing Section of the Russia-China Oil Pipeline stretches from the Heilongjiang boundary river in Mohe County to the Daqing Terminal in Daqing City, Heilongjiang Province. Running across cold frozen areas, virgin forests, nature reserves and environmentally sensitive rivers including Heilongjiang River and Nenjiang River, the project has extremely high requirements for environmental protection.

In May 2014, the Mohe-Daqing Section passed the onsite inspection by the Ministry of Environmental Protection. The survey conducted by the Appraisal Center for Environment and Engineering of the Ministry of Environmental Protection shows that all the respondents including companies and residents were satisfied with environmental protection in the project.

During construction, great importance was attached to soil and vegetation protection. We actively restored the landscape, strengthened the protection of wild animals, and developed specific measures for ecological protection. Specifically, to reduce the occupation of the virgin forest, we cut the width of our operational area from 28m to 18-20m, saving 547.33 hectares of land; to protect virgin forests, we invested RMB 100 million for soil and water conservation, and have reclaimed 816 hectares of arable land, remedied 680,000 cubic meters of soil covering, and built a green area of 1126.67 hectares, with a forestry and grass recovery percentage of 97.6%; to protect wildlife habitats, we reduced our operations at night and avoided construction in the breeding season; to protect the ecological diversity of the water area, we provided RMB 19.1 million to build fish breeding stations, conduct technology research on the artificial reproduction of burbots, and monitor water quality and aquatic life along the pipeline. 200,000-500,000 cold-water fish are released into the river every year.

Nov. 7 2016 CNPC and Gazprom signed an agreement to cooperate in mutual recognition of standards and conformity assessment results and an MOU to explore the opportunities for cooperation in the NGV sector, in a bid to bring the two companies' collaboration in standardization and NGV to a higher level.

Jul. 20 2016 The Second Russia-China Crude Pipeline started construction in Jiagedaqi, Heilongjiang. The pipeline starts from the Initial Station in Mohe, Heilongjiang, goes across Heilongjiang and Inner Mongolia, and ends at Linyuan Station in Daqing, Heilongjiang. With a total length of 951 kilometers and designed deliverability of 15 million tons per year, the pipeline will run parallel with Russia-China Crude Pipeline which has already become operational.

Jun. 25 2016 CNPC and Gazprom signed an MOU on promoting cooperation in underground gas storage and gas power generation projects in China. Under the MOU, CNPC and Gazprom will push ahead with the underground gas storage and gas power generation projects and explore a wider range of cooperation opportunities.

Dec. 17 2015 CNPC and Gazprom signed an agreement to design and construct the crossborder section of the Eastern Route of Russia-China Gas Pipeline, and an MOU on cooperation in the oil sector between CNPC and Gazprom Neft. The agreement has set the procedures for the design, engineering and construction of the pipeline, and provided standards on the project quality and environmental protection. According to the MOU, the two sides will collaborate in upstream operations in Russia and third countries, and seek cooperation opportunities in petroleum exploration and development, sales of oil and gas products, oilfield services, and trade of petroleum equipment.

Nov. 9 2014 CNPC signed a framework agreement on gas imports from Russia via the western route with Gazprom, and a cooperation framework agreement on the Vankor Oilfield project with Rosneft, respectively.

Oct. 13 2014 CNPC signed a technical agreement on the construction and operation of the eastern route of Russia-China Gas Pipeline with Gazprom, and an agreement for furthering strategic cooperation with Rosneft, respectively.

Sept. 1 2014 construction commenced of the Russian section of the eastern route of the Russia-China Gas Pipeline. With a total length of 2,680km in Russia, the eastern route gas pipeline will start to transmit natural gas to China from 2018.

May 21 2014 CNPC and Gazprom signed a purchase and sale contract on gas supply via the eastern route of the Russia-China Gas Pipeline.

Oct. 22, 2013 a document on major terms of commissioning schedule and oil supply for Tianjin Refinery was signed with Rosneft. CNPC holds a 51% stake and Rosneft holds a 49% stake in the Tianjin Refinery project.

Oct. 17, 2013 an MOU was signed with Rosneft on expanding upstream cooperation in eastern Siberia.

Sept. 5, 2013 a framework agreement on natural gas supply from Russia to China via the eastern route was signed with Gazprom.

Jun. 21, 2013 a long-term contract on increasing crude oil deliveries from Russia to China was signed with Rosneft.

Jun. 21, 2013 a framework agreement was signed with Novatek to purchase a 20% stake in the Yamal LNG Project. A stock purchase agreement was signed between the two sides on September 5, 2013.

Jan. 1, 2011 the Russia-China Crude Pipeline became operational.

Sept. 27, 2010 Chinese President Hu Jintao and Russian President Dmitry Medvedev took part in the ceremony to mark the completion of the Russia-China Crude Pipeline. On the same day, CNPC inked a general agreement with Transneft over the operation of the Russia-China Crude Pipeline that stretches from Russia's Skovorodino station to China's Mohe station, a framework agreement with Gazprom to import natural gas to China, an agreement with Rosneft on extending oil supply to the Russia-China Crude Pipeline, and an agreement with LUKoil on expanding strategic cooperation.

Oct. 13, 2009 Witnessed by the premiers of the two countries, CNPC signed the framework agreement on Russia exporting natural gas to China with Gazprom, and a memorandum of understanding on upstream-downstream cooperation with Rosneft.

May 18, 2009 Construction commences of the Mohe-Daqing section of the Russia-China Crude Pipeline. The 1,030km pipeline, runing from Russia's Siberian city of Skovorodino to China’s northeastern city of Daqing, has a designed annual deliverability of 15 million tons, and is expected to become operational by the end of 2010.

Feb. 17, 2009 CNPC signs an agreement to design, construct and operate a pipeline from Skovorodino in Russia to China's border area with Transneft, and two agreements on a long-term crude oil trading deal with Rosneft and Transneft respectively, laying the foundation for the construction of a Russia-China Crude Pipeline.

Oct. 28, 2008 An agreement in principle is signed with Transneft on the construction and operation of a crude pipeline from Skovorodino in Russia to Mohe at the Sino-Russian border. According to the agreement, China and Russia will jointly construct and operate the Russia-China Crude Pipeline based on the Phase I project of Russia's Far East Pipeline.

Oct. 2006 CNPC and Rosneft jointly established Vostok Energy Ltd., of which CNPC held 49% of stake.

Sept. 2006 CNPC signed a strategic cooperation agreement with Lukoil Company.

Mar. 2006 CNPC signed a MOU on Supplying Natural Gas from Russia to China, an Agreement on the Basic Principles for the Establishment of Joint Ventures in China and Russia for Strengthening Oil Cooperation and a Minute on CNPC-Transneft Meeting with Gazprom, Rosneft and Transneft respectively.

Jul. 2005 CNPC signed a long-term cooperation agreement with Rosneft.

Dec. 2003 CNPC and Sakhalin Energy signed a frame agreement on exploration and development in Russia’s Sakhalin oilfield.