China Becomes Rosneft’s Biggest Oil Importer in 2007

MOSCOW. May 22 (Interfax) – China has become Rosneft’s (RTS: ROSN) biggest oil importer in 2007, with 8.9 million tons of oil bought, just as in the previous year, the company said in an annual report.

China accounts for 14.1% of all exports of oil and gas condensate, Rosneft said.

In 2007, Rosneft exported 63.2 million tons of oil and gas condensate (including oil purchased from third parties): 27.3 million tons (43.2%) – to Western and Central Europe; 17.8 million tons (28.2%) – to the Mediterranean countries; 11.3 million tons (17.8%) to the Asian-Pacific region; and 6.8 million tons (10.8%) to the CIS countries.

The company supplied 41 million tons (64.9%) through maritime terminals of Primorsk, Novorossiisk, the Belokamenka floating oil storage facility, De-Kastri and Yuzhny; 9.1 million tons (14.4%) by train to China and Belarus, including successive transportation through oil pipelines and by railway; and 13.1 million tons (20.7%) through oil pipelines to Belarus, Poland, the Czech Republic and Kazakhstan.

The export terminal at the port of De-Kastri in Khabaravosk Territory, owned by the Sakhalin-1 project consortium (in which Rosneft holds 20%), shipped 2.4 million tons of the company’s oil. The company exported 2.4 million tons of oil via Belokamenka.

In 2007, Rosneft supplied 5.2 million tons of oil and 700,000 tons of gas condensate via the Caspian Pipeline Consortium.

Under a 2004 contract, the China National Petroleum Corporation (CNPC) paid $6 billion to its Russian partner for supplying 48.4 million tons of oil before 2010. Meanwhile, Rosneft announced last year that it will review the contract’s price formula due to changes in the market situation. In fall 2007, CNPC agreed to an oil price increase by $0.675 per barrel under its contract with Rosneft. Talks between the parties continue, the Chinese corporation has said it is not prepared yet for a further oil price increase under the contract with Rosneft.

The parties are also in talks over a new long-term contract, whereby Rosneft would supply to CNPC 50 million tons of oil during 2011-2015, however, so far no consensus has been reached on a price.

(c) 2008 Daily News Bulletin; Moscow – English. Provided by ProQuest Information and Learning. All rights Reserved.