Russian Oil Concern Rosneft Agrees To Double Oil Shipments To China, Shifting Focus From Struggling Europe
June 21, 2013 11:45 PM EST
Moscow-based Rosneft NK OAO (MCX:ROSN) is doubling down on China’s hunger for crude.
The company announced Friday it has inked a deal worth hundreds of billions of dollars that will vastly increase Rosneft's “long-term crude oil supply contracts to China” via the China National Petroleum Corporation (CNPC). The deal, which by the second half of this decade will double Rosneft’s crude shipments to China to 600,000 barrels per day and continue at that level for 25 years, was so important to the two countries that Russian President Vladimir Putin and Zhang Gaoli, first vice premier of the People's Republic of China, ceremoniously signed the deal Thursday during the Saint Petersburg International Economic Forum.
"The estimated value of the deal is $270 billion," Igor Sechin, board chairman, president and director of the state-owned energy concern, said at a press conference in St. Petersburg Friday, as reported by Reuters.
In recent years Russia has been shifting its energy exports emphasis to the east while Europe's economy contracts under the stress of its sovereign debt crisis that has lowered manufacturing output and thus demand for oil and gas from the energy rich Russian Federation.
Rosneft is already exporting about 750,00 barrels per day to Asia out of its total daily exports of 4.4 million barrels per day.
To contact the editor, e-mail:
Most Popular Slideshows
Join the Conversation
- Miley Cyrus Flaunts Cleavage: Singer Wears Bondage Style Dress For amfAR Gala [See Pictures]
- Arsenal FC: 'I am starting to settle down now' - Calum Chambers
- 'World Of Warcraft' 6.0.3 Patch Hotfixes Update Including Hallow's End And The Latest Resolved Issues Regarding The 'WoW' User Interface, Classes, Dungeons, Raids and Scenarios
- 'Black-ish' Halloween Special Recap: Andre Is 'The Prank King'
- Michelle Rodriguez Imagines How Paul Walker Would React To New "Fast And The Furious 7' Trailer
- Nokia Lumia 730 v. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Apple iPhone 6 Plus vs Motorola Droid Turbo: Comparsion On Processor, Software And Battery
- Australia Special Forces Await 'Delayed' Iraqi Visas Before Joining ISIS Fight
- ISIS Has Been Equipped With Advanced Anti-Aircraft Missiles
- 8 Important Things to Consider Before Buying or Upgrading to iPad Air 2
- Canada’s Official ISIS Mission Starts On Weekend; Kuwait Uneasy