The Russian oil giant Rosneft wants to sell 10 mln tons of crude oil a year to the Chinese concern Sinopec throughout the next decade.
On Tuesday, Rosneft and Sinopec signed a letter of intent regarding these deliveries during the official visit of the Russian Prime Minister Dmitry Medvedev in Beijing. Deliveries are to begin next year and according to the head of Rosneft Igor Sechin, the Chinese concern will pay 25-30% of the entire contract's worth in advance. 'It is 85 bln dollars,' said the Prime Minister of Russia. It is not know what data the head of the Russian government used to provide this estimate.
According to the Russian statistical office Rosstat, in August Russia received 736.9 dollars for 1 ton of exported crude oil, whereas on the world markets 1 ton of the Russian oil Urals cost 811 dollars. Since that time, the price of oil has fallen around the world.
There is never enough of valued Chinese clients. Sinopec is now Rosneft's second Chinese customer. Since the start of the decade, the Russian concern has been delivering 15 mln tons of crude oil a year to the China National Petroleum Company. In June, Rosneft also signed an agreement regarding the delivery to CNPC of an additional 360 mln tons of 'black gold' for the next 15 years. President of Russia Vladimir Putin estimated the worth of these additional deliveries to CNPC at 270 bln dollars.
On Tuesday, Rosneft signed another agreement with CNPC regarding the construction schedule of the joint crude oil refinery in China. Rosneft and CNPC signed the investment agreement estimated at 5 bln dollars back in 2010, but the investment has not been approved as of yet. The new schedule assumes that the construction of the refinery will be approved at the beginning of 2017 and will be commissioned for use by the end of 2020 at the latest. At the same time, Rosneft and CNPC have decided that the refinery will process up to 19 mln tons of crude oil a year, 6 mln tons more than was initially planned.
And what will the Chinese get in return? They will gain direct access to Syberian deposits. Last Friday, Rosneft signed a letter of intent with CNPC regarding the deposits in Syberia, located near the oil pipeline that connects the crude oil deposits in Eastern Syberia with China and the port terminal over the Pacific.
Together, Rosneft and CNPC will exploit the Srednebotuobinsk deposit that contains 134 mln tons of crude oil and 155 bln m3 of gas. Starting this month, the crude oil found in these deposits is now being extracted. 1 mln ton of the resource is supposed to flow next year. And beginning from 2017 - it will be more than 5 mln tons of oil a year. The Chinese will have 49% of shares, while Rosneft will hold the control package of 51% of shares in the company that will exploit this deposit.
China belongs to one of the few countries that Russia trades with without fuss.
Illustration: Chinese paintings and the Zaporozhian Cossacks write a letter to the Sultan of Turkey / Wikipedia