Rosneft, China's CNPC to take a look at brand-new upstream projects in Russia

types of paint additives -run Rosneft and China National Petroleum Corp. have authorized a memorandum of recognizing to expand cooperation in hydrocarbons exploration and also development, which envisages feasible acquisition of new assets offshore as well as onshore Russia, the oil producer said late Monday.

The file was authorized by Rosneft's Head of state Eduard Khudainatov as well as CNPC General Supervisor Jiang Zemin, at a Russia-China energy dialogue in St Petersburg.

Under the MOU, the events will certainly take into consideration the possibility of getting new properties by Vostok Power, a joint endeavor between Rosneft (51%) as well as CNPC (49%) set up for upstream tasks in Russia, Rosneft stated in a declaration.

"The parties are to establish a working group, which will certainly study possible choices for the JV to develop offshore as well as onshore projects," it stated.

The MOU allows "maintaining a mirror principle of collaboration as well as brings the mutual job by Russia and China in the oil industry to a brand-new degree," Rosneft stated.

The events likewise noted "development in the teamwork between Rosneft as well as CNPC in the downstream market," the Russian company included.

CNPC holds a 51% rate of interest in the China-Russia Eastern Petrochemical Firm, whereby the two work together in the downstream field in China. Rosneft has the remaining 49% in the joint venture.

In late September, the two firms signed an agreement to perform the front-end engineering layout research study for a refinery to be developed jointly near Tianjin in north China and also held a groundbreaking ceremony to mark the start of the building and construction.

The building of the 260,000 b/d refinery is estimated to set you back $5 billion and also is set up for completion by 2015.

The parties also plan to establish a retail network of around 500 service stations in the area.

Rosneft is to provide up to 70% of crude to the refinery, with CNPC to supply the continuing to be 30%.

In 2007, Vostok Power got two licenses to explore and establish the Zapadno-Chonsky as well as Verkhneichersky hydrocarbon obstructs in the East Siberian Irkutsk region, marking the beginning of teamwork in the Russian upstream industry.

The blocks, with incorporated sources approximated to hold 80 million mt (or 584 million barrels) of crude and also 105 billion cubic meters of gas, are located nearby already generating significant oil areas such as Verkhnechonsk, established by TNK-BP and also Rosneft, and Talakan, created by Surgutneftegaz.

The both areas are resources for Russia's brand-new export mix ESPO being exported by means of the East Siberia-Pacific Sea pipe mainly to Oriental markets.