CNPC and Rosneft sign MOU on expanding upstream cooperation in eastern Siberia

2013/10/18

On October 17, Chinese Vice Premier Zhang Gaoli met with Igor Sechin, Rosneft President and Chairman of the Management Board and Executive Secretary of the commission on the strategic development of Russia's energy sector, in Diaoyutai State Guesthouse in Beijing. They had a discussion focusing on the implementation of major Sino-Russian cooperation projects. During their meeting, CNPC Chairman Zhou Jiping and Mr. Igor Sechin signed a MOU on expanding upstream cooperation in eastern Siberia.

According to the MOU, CNPC and Rosneft will collaborate closely to develop several large-scale oil and gas fields in eastern Siberia and the Far East. A JV company will be established, with Rosneft taking 51% and CNPC 49% in the equity. CNPC and Rosneft will thereafter join hands in acquiring and developing oil and gas fields of mega reserves in eastern Siberia and the Far East. The oil produced will be used to meet the energy demand in eastern Russia and then exported to China and other Asia-Pacific countries through Russia-China Crude Pipeline.

The signing of the MOU is a new breakthrough reached by the two sides in upstream cooperation, and will surely promote future cooperation in the downstream businesses and other sectors.