Rosneft and CNPC sign memorandum to produce oil in Eastern Siberia

Earlier this week, Rosneft and China National Petroleum Corp (CNPC) signed a memorandum calling for the creation of a joint venture for oil exploration and production in eastern Siberia, a further step toward tighter energy co-operation between the neighboring countries.

Rosneft will have 51% in the future joint venture, while CNPC will own the remaining 49%. The companies will develop the Srednebotuobinsk oilfield that Rosneft gained full control of earlier this week, consolidating 100% of the Taas-Yuryakh oil firm.

Srednebotuobinsk oil field

The Srednebotuobinsk oil field is close to the Eastern Siberia-Pacific Ocean (Espo) pipeline. Rosneft delivers approximately 300 000 bpd of oil to China via a spur line that taps into Espo. Earlier this year, Rosneft agreed to double supply volumes.

According to Rosneft, Srednebotuobinsk deposits include approximately 134 million tones of oil and over 155 billion m3 of gas. Oil production from the field started earlier this month.

The field will supply oil to Rosneft’s Komsomolsk refinery and the planned Far Eastern Petrochemical Company. It will also provide exports to China and other Asia-Pacific markets.

Strategic partnership

President of Rosneft Igor Sechin said, “The memorandum is another step in developing the strategic partnership between Rosneft and CNPC in various areas of co-operation...Our balanced strategic position will enable us to jointly develop and produce hydrocarbons, execute long-term supplies, jointly construct refining capacity and manage various assets.”

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/22102013/rosneft_and_cnpc_sign_memorandum_to_produce_oil_in_eastern-siberia/