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Russia's Rosneft says may buy 30 percent of ChemChina subsidiary

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(Credit: Reuters) A flag with the logo of Rosneft company flies next to an oil derrick at Suzunskoye oil field north from the Russian Siberian city of Krasnoyarsk March 26, 2015.Rosneft
June 21
6:46 PM 2015

Russia's top oil producer Rosneft has signed a memorandum that paves the way for purchasing 30 percent of China National Chemical Corp's [CNNCC.UL], a subsidiary of ChemChina Petrochemical (CCPC), the oil major said on Saturday.

Rosneft will also supply 200,000 tonnes of crude oil a month (48,000 barrels per day) to the company within a year, in a deal that would strengthen Rosneft's position in the world's top energy consumer.

It's not clear, when Rosneft will start supplying oil to CCPC.

"Together with the project of construction of a refinery in China the cooperation with ChemChina will allow Rosneft to obtain a new potential for the production and marketing of products along the whole value-chain to the end-customer," Rosneft said in a statement.

It also said that the signed memorandum envisages Rosneft's analysis of CCPC assets. Rosneft will pay for the share from finances, raised by the sales of oil to CCPC.

The memorandum foresees cooperation in the area of oil, oil products and petrochemical trading, Rosneft said.

The company, headed by Igor Sechin, an ally of Russian President Vladimir Putin, is looking to increase oil supplies to Asia amid Moscow's chill in relations with the West over the Ukrainian conflict.

Rosneft plans to increase its share of oil sales to Asia to 40 percent of its total crude exports by 2019.

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