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PetroChina looking to invest USD 10bn in Russian gas fields

10th September 2013

The Chinese company is looking to acquire a USD 10bn minority share of eastern Siberian gas fields operated by Gazprom and Rosneft

A plant on the east Siberian gas field
The USD10bn deal, if PetroChina are successful, will see the supply of as much as 68 billion cubic meters of gas a year.

Chinese company PetroChina has been looking into an USD 10bn investment into eastern Siberian gas fields, Bloomberg reported, as part of efforts to end almost a decade’s worth of negotiations on gas supply between the two nations.

 

The gas fields are owned and operated by Russian companies Gazprom and Rosneft.

 

The deal, worth an estimated USD 10bn, will see the supply of as much as 68 billion cubic meters of gas a year. If successful, it will become PetroChina’s largest overseas acquisition to date.

 

Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein told Bloomberg that the deal will be ideal for both nations with China being ‘’a large gas market’’ and Russia holding ‘’the world’s biggest reserves’’.

 

Despite the decade-long gas negotiations between the two countries, China and Russia have been willing to work together on various oil projects, especially in the last couple of months. 

 

Igor Sechin, president of Russian oil giant Rosneft, has been traveling to China to meet with bosses at Chinese state owned CNPC on various projects including a refinery project in the Chinese city of  Tianjin and exploration and production projects in the Arctic Seas.

 

The company has also been meeting with two other Chinese oil companies, CNOOC and Sinopec, into possible cooperation in upstream projects.

 

CNPC have been using the talks with Rosneft to look into the possibility of expanding its overseas energy assets by acquiring some of their oil and gas fields.