Rosneft Becomes Chinese Strategic Partner

Rosneft and the Chinese conglomerate CEFC China Energy Huaxin signed an agreement on strategic cooperation and a long-term contract for the supply of oil at the BRICS IX summit in Xiamen. The heads of the companies, Igor Sechin and Chen Tsutu, signed the documents.

"The agreement on strategic cooperation provides for the implementation of joint exploration and production projects in Western and Eastern Siberia and is an indication of the integral approach of the Chinese corporation to cooperation with Rosneft. The agreement also provides for the interaction of companies in such areas as oil refining and petrochemicals, trade in oil and oil products," Rosneft said in a statement.

"We plan to make joint investments in strategically important projects in the Russian oil and gas sector," the president of CEFC said.

Huaxin is also to join the holding company QHG Oil, which manages a 19.5% stake in the Russian state-owned company bought in December 2016 by a consortium of the Swiss trader Glencore and the Qatar Investment Authority (QIA), Qatar's state-owned holding company that can be characterized as a National Wealth Fund.

David Drummers