Chinese imports of crude oil from Rosneft will amount to 10% of Russia’s current output over the next 25 years, the country’s National Petroleum Corporation (CNPC) has announced.
China is set to receive over 46million tons of crude oil a year, or 922,000 barrels per day as part of a contract with Rosneft.
Russia’s current crude oil production is estimated at around 10.5million barrels per day, with the number not expected to rise due to a decline in the main supplies from West Siberia.
In order to supply China, Rosneft is looking at the yet un-launched East Siberia fields which it estimates should produce a total of 17.4billion barrels of oil. Production in the region, in Yurubcheno-Tokhomskoye fields, is expected to start in 2016.
Rosneft could receive up to £45bullion in upfront payments for the oil, according to Russian president Vladimir Putin. The company’s chief executive, Igor Sechin, told an economic expo in St Petersburg the estimated value of the new supply deal was £175billion.
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