ASIA: Rosneft Shares Irkutsk Wealth with China

Russia’s state-run Rosneft and Vostok Energy, which is its venture with China’s CNPC, paid yesterday 2.1 billion rubles for three prospect areas in Irkutsk region. Of this amount, CNPC’s contribution reached 1.2 billion rubles.

This cooperation is mutually advantageous, the analysts say. The Chinese will benefit from guaranteed supplies of crude from Russia, while Rosneft can acquire promising fields without raising the loans.

Subsoil Agency of Irkutsk, Irkutsknedra, auctioned yesterday licenses for geological exploration and development of four areas in Katansk district of Irkutsk region. asiaAll of them are located close to big fields that have been already explored and at the distance of 90km to 150km from the route of Eastern Siberia-Pacific Ocean (ESPO) pipeline.

Three biggest areas, Verkhneichersky (forecasted reserves of 50 million tons of crude and 90 billion cu meters of gas), Zapadno-Chonsky

(30 million tons and 15 billon cu meters) and Preobrazhensky (72 million tons and 70 billion cu meters) went to Rosneft or Rosneft-controlled Vostok Energy.

Rosneft and CNPC set up Vostok Energy in October of 2006. Rosneft holds 51 percent and the Chinese own the remainder. rosneft

The venture with mirror ownership was registered in China to construct a refinery in Tianjin with the annual capacity of 10 million tons a year.

Vostok Energy won’t halt its buying activities after acquiring the first production assets in Russia.

It has applied to bid for Vakunaisk and Ignyalinsk areas that will be auctioned on September 12, said Vostok Energy General Director Nikolay Syutkin.

Via: Kommersant