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Rosneft to hold more talks with CNPC concerning oil refinery project

27th August 2013

Rosneft and CNPC resume talks on Tianjin project that will produce 13 million tonnes of crude oil a year

Rosneft to hold more talks with CNPC concerning oil refinery project
The facility will process 13 million tonnes of crude oil every year, with Russia providing 9 million.

A Russian oil firm is looking to hold more talks with a Chinese counterpart concerning joint projects between the two companies.

 

The head of the Russian oil giant Rosneft Igor Sechin is looking to visit the bosses of Chinese state-owned oil company China National Petroleum Corporation (CNPC) to continue talks of future deals between the two. This follows up from talks in May concerning joint exploration and production projects in the Arctic Seas.  

 

One of the big topics on the table will be the construction of an oil refinery in the Chinese city of Tianjin.

 

Built by CNPC and Rosneft’s joint venture Vostok Pretrochemicals, the facility will process 13 million tonnes of crude oil every year, with Russia providing 9 million.

 

Since the intergovernmental agreement on the refinery was signed last spring, a major stumbling block has been how Rosneft will get its investment back. China’s state regulations on its petrol prices are considered a factor for this potential problem.

 

As a result, Rosneft will further request a special licence to export some of the refinery’s output.

 

CNPC has had talks with Rosneft to purchase some of the Russian company’s oil and gas fields to expand its energy portfolio.