Russian oil company Rosneft and Chinese National Petroleum Corporation (CNPC) have signed an agreement to extend and strengthen their strategic cooperation. The two companies already collaborate on crude oil supplies under a long-term crude sale and purchase agreement and on crude, oil products and petrochemicals export within the framework of tenders. They have also set up two joint ventures, Vostok-Energy dealing with hydrocarbons exploration and production in the Irkutsk Region of Russia, and Vostok Petrochemicals for the construction of the proposed 13 Mt/year Tianjin refinery and refined products sales in China and across regional markets. Under the new agreement, the parties intend to proceed with upstream projects in the Russia, refining in China (Tianjin Refinery) and other venues of cooperation. In March 2016, CNPC and Rosneft are expected to make an investment decision regarding the Tianjin refinery construction which may be completed by the end of 2019. The companies are also considering the development of LNG projects which embraces potential Russian LNG supplies to China.
Source: Rosneft