The largest Russian oil company Rosneft and the China Huaxin energy company signed an agreement on strategic cooperation and long-term contract for the supply of oil.
As the press service of Rosneft, the strategic cooperation agreement provides for the implementation of joint projects in the field of exploration and production in Western and Eastern Siberia. The agreement also provides for cooperation between companies in areas such as refining and petrochemicals, trade of oil and oil products.
In addition, Rosneft and Huaxin signed a contract to supply Russian crude oil. “This agreement will increase direct supply of oil to the strategic Chinese market, providing a guaranteed cost-effective export channel sales of oil companies,” – noted in Rosneft.
The agreement will enter into force after obtaining corporate approvals Rosneft.
In 2016, the decline in crude oil production in China reached 200 million tons. Dependence on foreign oil made up more than 65%. China consumes more than 550 million tons of oil a year. For this indicator, the country is second only to the USA (more than 850 million tons).
Rosneft is one of the world leaders in the production of liquid hydrocarbons. In 2016 oil and gas condensate amounted to 210 million tonnes, which is 3.6% higher than in 2015. The company’s share in oil production in Russia is about 40%, and in world production 6%.