Russia agrees $270 billion oil deal with China

Russia agrees $270 billion oil deal with China 21 June 2013, by James Marson - St. Petersburg (MarketWatch) http://www.marketwatch.com/story/russia-agrees-270-billion-oil-deal-with-china-2013-06-21 Russia--Russian oil major OAO Rosneft has agreed on a 25-year contract with China to deliver 365 million tons of oil to the country in a deal worth $270 billion. Russia already supplies China with 15 million tons of oil annually. Rosneft also signed a deal with PKN Orlen SA , Poland's largest oil refiner, to deliver crude oil via pipeline Druzhba to the Czech Republic, the two companies said at the St. Petersburg International Economic Forum Friday. The contract of up to approximately $7 billion estimate the agreed volume of deliveries at up to 8 million tons. The deliveries will be carried out until June 30, 2016. Rosneft and Trafigura, one of the world's largest commodities trading houses, also signed an up to a $1.5 billion contract to have Rosneft export up to 10.11 million tons of crude oil and petroleum products via Russian ports to Trafigura. In late April a person familiar with the situation told Dow Jones Newswires that "a chunk" of traders from TNK-BP, a 95% stake in which had been purchased by Rosneft, will be joining the new Trafigura business in Russia. Additionally, Rosneft signed an agreement to create a joint venture on crude oil and petroleum products trading with Saras S.p.A. , an Italian refinery, which owns the Sarroch refinery, on the southern tip of Sardinia, one of Europe's largest. Among the joint venture's future key activities are trading operations involving both parties' assets as well as entering new markets using both companies' potential. The 50/50 joint venture is expected to begin operations in 2014 upon getting regulators' approvals. Rosneft and SANORS petrochemical holding company signed an agreement to create a joint venture that will incorporate Rosneft's gas processing assets and SANORS' petrochemical assets in Orenburg and Samara regions. It's expected that Rosneft's stake in JV will be no less than 50%, while Sanors' stake won't exceed 50%. The parties plan to further negotiate formation of the joint venture and sign binding documents by the end of 2013.