Russian Oil Cos Secures $25B Oil Loan from China
In the framework of Russian-Chinese energy cooperation, on February 17, Rosneft and Transneft signed a set of long-term agreements with the China National Petroleum Corporation (CNPC) and the China Development Bank (CDB) in Beijing.
The two Russian majors drew 20-year loans for a total of US $25 billion from CDB that bear market-based interest rates (Rosneft -- US $15 billion; Transneft -- US $10 billion).
Additionally, Rosneft and Transneft signed a 20-year oil export contract with CNPC under which the Russian companies will deliver 15 million tonnes of crude annually starting from 2011. The contract ensures fair pricing based on market quotes as of shipment date. Oil supplies will be routed via an East Siberia -- Pacific Ocean pipeline branch from Skovorodino to Daqing that will be constructed jointly by Transneft and Chinese contractors.
"I believe we can all take pride on what has been accomplished, as the new agreements will give a great boost to our cooperation with China and further expansion of export operations. The US $15 billion loan from CDB is in fact the biggest one raised in Russia since the onset of the economic crisis, which is another confirmation of the market's strong confidence in our company," Rosneft President Sergey Bogdanchikov commented.