Rosneft manages to agree with China only on oil supplies

By results of the Vladimir Putin's visit to China Rosneft signed a dozen agreements with local companies, in particular, the Chinese state-owned company ChemChina can get 40% of the VNKhK project and Beijing Enterprises -. 20% in the Verkhnechonskoye field. However, the only binding document became an annual contract on the supply of up to 2.4 million tons of oil to ChemChina. Despite the constant efforts of many years, Rosneft hasn’t yet managed to run even a single project with the Chinese in the processing of raw materials, the cooperation is limited with to the production and delivery of oil.

Rosneft and Chinese ChemChina have agreed on the distribution of shares in the project of the Eastern Petrochemical Company (VNKhK), which involves the construction of a petrochemical complex in the Far East, and its proportional financing. Under the agreement, the Russian company may refer 40% to the Chinese, remaining a control over VNKhK. The project provides for the launch of three stages from 2020 to 2028 to produce 24 million tons of oil and 6.8 million tons of petrochemical products. In 2013, investments were estimated at 1.3 trillion rubles. The company’s CEO Igor Sechin admitted that the petrochemical unit would be built not in the third, but in the second stage of VNKhK, he said nothing about the fate of the third stage (12 million tons of primary oil refining).