China Petrochemical Corporation (Sinopec) has struck a deal with Rosneft on the joint development of the Russkoye and Yurubcheno-Tokhomskoye fields.
The companies have signed a heads of agreement on cooperation within the proposed joint development of the assets.
Under the agreement, Sinopec will have the right to acquire a 49% stake in East Siberian Oil and Gas Company (ESOGC) and Tyumenneftegaz which hold the exploration licenses for the fields.
A document was signed by the chairman of Rosneft management board Igor Sechin and the chairman of Sinopec Wang Yupu during Russian President Vladimir Putin’s visit to China.
A spokesman said both parties agreed the two oil fields listed in the new agreement have “bright prospects”.
He said: “The two fields are located in one of the key regions of Rosneft operations. Joint development of tight oil reserves will allow Sinopec Group and Rosneft to mitigate the operational risks of the projects.
“The cooperation will also enhance the projects’ capacity in financing, technology and implementation.
“Both parties look forward to collaborating further on exploration and production”
The companies will now set up a Joint Technical Group to finalise the investment plan and agreement.