Rosneft signs deals with China firms, sells 20% in gas firm

MOSCOW, Jun 27 (PRIME) -- Russian oil major Rosneft signed agreements with China’s Sinopec, ChemChina and Kerui during a visit of President Vladimir Putin to China, and sealed an agreement to sell 20% in affiliate Verkhnechonskneftegaz (VChNG) to Beijing Gas on June 25.

Rosneft CEO Igor Sechin said: “An extremely important agreement: the entrance of Beijing Gas into the VChNG project. At this stage we signed the main principles of an agreement which defines price parameters. The stake amounts to 20%. The document is binding. And we will finish the deal soon after the corresponding procedures.”

Rosneft and Sinopec plan to build several petrochemical facilities near Samara in central Russia and in West Siberia, Sechin said.

“We also signed important agreements concerning development of our cooperation with Sinopec in petrochemistry on the basis of East Siberian deposits near Angarsk in the presence of the authorities of the countries. We plan to organize three such facilities with them, in the zone of Novokuybyshevsk and in West Siberia,” he said.

The two companies signed a framework agreement to choose the refining technology, consultant, goals and engineering studies. If successful, the joint venture is to be established in 2017. The facilities are designed to cover Russia and China’s demand for polyethylene and polypropylene.

Sechin said that Rosneft and Sinopec plan to figure out whether they are ready to sign a final agreement on the sale of 49% in West-Siberian Oil and Gas Company (VSNK) and Tyumenneftegaz in September. “We continue the negotiations with Sinopec. We agreed during the recent negotiations that we will make a final decision before a forum in Vladivostok.”

Rosneft also signed a one-year agreement to ship 1.2 –2.4 million tonnes of oil via the Port of Nakhodka with ChemChina.

Rosneft can close the deal to sell 20% in VSNK to ChemChina in several months, Sechin said. “They will receive 40% in this project. And we will change the terms: the petrochemical block will be the second rather than the third stage of this facility.”

Under a memorandum signed on June 25, Kerui will provide services to Rosneft in East and West Siberia.

Sechin separately said that Rosneft has no plans to reduce oil exports to China.

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