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Russia and China signed $270bn oil deal

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Staff writer ▼ | June 21, 2013
Rosneft CNPCRosneft chairman Igor Sechin and chairman of China National Petroleum Corporation (CNPC) Zhou Jiping signed long-term crude oil supply contracts to China.

"The estimated value of the deal is $270-billion," Mr. Sechin told reporters. The deal is one of the biggest supply deals in the history of Russia, the world's biggest oil producer.

The signature ceremony was led by Vladimir Putin, President of the Russian Federation, and Zhang Gaoli, First Vice Premier of the People's Republic of China. The contracts mark a further important step in the energy and economic relations between both companies and their respective countries.

Commenting on the long-term nature and the magnitude of the contracts, Mr. Sechin of state-owned Rosneft spoke about the opportunity they offer to solidify the long-term nature of the relationship between two companies, to provide incremental financial resources to further the company's exploration and production program, and to perform long-term crude sales at market-based prices.

Zhou Jiping noted the significance of the supply co-operation with Rosneft in function of diversity and security of supply for China, the opportunity it provides to ensure loading and further development of CNPC’s refining and marketing programs and the further strengthening it provides of the relationship between the companies to together explore other opportunities.

Rosneft and CNPC signed the contracts in the framework of the Intergovernmental Agreement between Russia and China entered into in March 2013. In addition to crude oil supplies, Rosneft and CNPC implement joint projects to build the Tianjin refinery and to develop cooperation in crude oil production.

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