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    Update: Rosneft Inks Eni Deal, Follows CNPC Accord

Summary

Russian Rosneft and China National Petroleum Corporation (CNPC) have signed an agreement to establish a joint coordinating committee (JCC) to discuss and implement projects in areas such as LNG, oil and gas exploration, refining and scientific and technological research.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Corporate, Exploration & Production, Political, News By Country, China, Egypt, Italy, Russia

Update: Rosneft Inks Eni Deal, Follows CNPC Accord

Update: Rosneft and Eni said May 17 they have signed a co-operation agreement to work together in Russia and abroad in the E&P, refining, trading, logistics and marketing, petrochemicals and technology and innovation sectors.

The agreement, signed in Sochi by both firms' CEOs in the presence of Russia's president Vladimir Putin and Italian prime minister Paolo Gentiloni, consolidates on previous agreements for the joint development of exploration activities in the Russian Barents Sea and Black Sea, and will underpin further opportunities between Eni and Rosneft including in the offshore Egyptian Zohr gas field project, said Eni. 

Five months ago Rosneft signed a deal to acquire a 30% stake in the Zohr concession from Eni, with an option to acquire a further 5%.

The May 17 accord with Eni follows an accord between Rosneft and CNPC announced two days earlier (original May 15 story follows).

 

Russian Rosneft and China National Petroleum Corporation (CNPC) have signed an agreement to establish a joint coordinating committee (JCC) to discuss and implement projects in areas such as LNG, oil and gas exploration, refining and scientific and technological research, Rosneft said May 15. The agreement was signed during the visit by Russia's president, Vladimir Putin, to China. The JCC would also assist in implantation of agreements reached between the two parties earlier.

 Signing ceremony (Credit: Rosneft)

At present, Beijing is the largest trading partner of Moscow, with Russia being one of the main suppliers of energy resources to China. In 2016, Russia was the biggest supplier of crude to China while in 1Q 2017 supplies were 12% higher than 1Q 2016, Rosneft executive chairman Igor Sechin said May 16.

He stated that Rosneft’s co-operation with Beijing Gas Group offers great opportunities for the company to supply natural gas to China. In November last year, Rosneft signed an agreement to sell 20% stake in Verkhnechonskneftegaz, a subsidiary of Rosneft, to Beijing Gas Group. This transaction will allow Rosneft to fully implement the significant development potential of the Verkhnechonsk field, including gas production.

Beijing Gas is a part of Beijing Enterprises Group and operates in the area of gas supplies, construction of gas infrastructure and power generation in the Beijing region. The company manages more the 20 gas projects in China and is the first Chinese company supplying more 10bn m³ of gas to the city.

 

Shardul Sharma