Russia to sell oil to China at market prices - Rosneft.

29/9 Tass 106

PETROPAVLOVSK-KAMCHATSKY, September 29 (Itar-Tass) - Rosneft has sold
650,000 tons of process oil to China at a market price. The oil will be
pumped through the Skovorodino-Mohe station pipeline in early December,"
Rosneft CEO Eduard Khudainatov told reporters.
"We've sold 650,000 tons of process oil at a market price under good
terms for us," Khudainatov said, underlining that all oil would be sold to
China at market prices, and that there would be no discounts.
"The price is set under the same principle as in Kozmino (the special
sea port which is the end point of the East Siberia - Pacific Ocean (ESPO)
pipeline. The tariff rate will amount to zero at the pass.
"Russia will supply 15 million tons of oil from East Siberia to China
every year, in particular from the Ivankovskoye oil field. Rosneft is
developing other oil fields, for example in the Irkutsk region wherefrom
it might supply oil to China, too. Russia can supply to China larger
amounts of oil than now," the Rosneft official said.
Under the contract with China, Russia will begin to supply commercial
oil from January 1, 2011.
On September 27, Russian President Dmitry Medvedev and Chinese
President Hu Jintao announced completion of the construction of the
Russian-Chinese oil pipeline on Monday.
A branch of the East Siberia-Pacific Ocean (ESPO) pipeline to China
was built in accordance with the contract between Rosneft, Transneft and
the China National Petroleum Corporation (CNPC), signed in February 2009.
The oil pipeline stretches from Skovorodino through Mohe on the border to
China's Daqin. China opened a 25-billion dollar credit line to Russian
companies in exchange for the guarantee of oil supplies for 20 years, from
2011 to 2030, with annual supplies totalling 15 million tons.
-0-myz/usn


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