China’s CEFC signs oil supply, joint exploration deal with Rosneft

Shanghai-based CEFC China Energy Company Limited and Russian oil major Rosneft have signed a long-term oil supplies contract and strategic cooperation agreement that involves joint oil exploration in Siberia.

The companies, represented by Rosneft’s Chief Executive Director Igor Sechin and CEFC China CEO Chen Qiutu, signed the agreements on the margins of the 9th BRICS summit,Rosneft said in a press release.

According to Rosneft, the strategic cooperation agreements provides for the implementation of joint prospecting and production projects in Western and Eastern Siberia and reveals the Chinese corporation’s integral approach to cooperation with Rosneft.

The agreement also envisages cooperation between the two companies in such areas as oil refinery and petrochemistry, trade in oil and oil products.

Apart from that, the two companies inked a contract on supplies of Russian crude oil. The contract, according to the Russian oil major, is geared to increase direct oil supplies to the strategically important Chinese market and will guarantee an economically efficient channel for oil exports.

“The agreements signed today fully reflect the company’s strategy, whose priorities includes strengthening relations with the Asia Pacific countries and, in particular, with China,” Rosneft CEO Igor Sechin said in a statement.

The document will come into force as soon as they are approved by Rosneft.

In June, the two companies agreed to set up a working group to look into possible cooperation on potential projects.

A vertically integrated company, CEFC China specializes in oil and gas production, refinery, transportation and sales projects.