The agreements reached are aimed at fulfilling the Agreement between the Government of the Russian Federation and the Government of the People’s Republic of China to expand cooperation in crude oil trading, which was signed on 22 March 2013.
Rosneft and Transneft Sign Agreements on Key Projects
October 11, 2013
Rosneft President and Chairman of the Management Board Igor Sechin and Transneft President Nikolai Tokarev have signed a number of agreements in fulfillment of the strategic plans on mutually beneficial terms and based on principles of co-financing to increase oil supplies volumes to China and to the Rosneft’s Tuapse refinery in the Krasnodar region.
The package of agreements on oil supplies increase to China envisages commitments by the Parties to finance and implement the activities aimed at the capacity expansion of the Skovorodino-Mohe oil pipeline, as well as to increase respectively the volumes of crude shipment in this direction. The pipeline capacity is expected to reach 20 million tonnes of crude per year beginning on 1 January 2015 and 30 million tonnes per year beginning 1 January 2018. It means that 15 million tonnes per year will be supplied to China from 2018 to 2037 in addition to existing volumes.
The agreement on oil supplies to the Tuapse refinery provides for supply volumes of 12 million tonnes per year once the work on increasing the capacity of the trunk pipeline’s leg from Tikhoretsk to Tuapse refinery is completed.
Commenting on the agreements signed, Igor Sechin said: “The agreements reached today not only ensure the implementation of Rosneft’s long-term strategic plans, but also facilitate the development of the sector in general and make a considerable contribution to the improvement of energy security of Russia’s partners on the international market.
Rosneft press release