Ministry official said that an intergovernmental agreement was signed on April 21, 2009 in Beijing by Russian Deputy Prime Minister Igor Sechin, who oversees the energy sector.
Beijing has abundant cash that Moscow needs to access as it heads into its first recession in a decade. Some Russian firms are finding it difficult to pay back loans and to borrow project finance on commercial markets.
China, which has been working hard to win oil supplies from Africa and elsewhere to run its industries, will receive flows from its neighbor.
Russia is looking to diversify its exports away from the West and is targeting China as the main market for oil that will be extracted from a new generation of fields in East Siberia.
Transneft and China National Petroleum Corporation agreed in October 2008 to construct a spur to carry 15 million tones annually, or 300,000 barrels per day, between the countries’ trunk pipelines.
Over 20 years, this adds up to 300 million tonnes – enough to meet around 4% of China’s current oil needs.
Russian news agencies quoted Sechin as saying the spur would be built next year. He added Chinese companies could get access to Russian oil fields, while Russian players would increase their presence in Chinese refining. He did not elaborate.
The experience we obtained when preparing this agreement can be used to boost co-operation in other energy spheres, Russian agencies quoted Sechin as saying.
We will boost co-operation in the natural gas, nuclear, power and coal industries, he added.
