Sinopec Signed Natural Gas Payment Deal with Rosneft
Chinese oil giant Sinopec has signed a oil payment agreement with Russia Reosneft which was the international leading crude oil producer. According to the agreement, Sinopec would pay for Russian oil deliveries.
The 10-year contract will see that China pay 25-30 percent of the total costs and get 10 million ton of oil
annually from 2014.
The Rosneft has issued terms to specific meeting its clients.
The visit of Russia Prime Minister Dmitry Medvedev to Beijing was to make the deal announcement and to make the first Russia natural gas delivery accessible to Chinese energy market.
The total value of the contract can reach at $85 billion.
The negotiators of the Russia representing Russia and China talks are the country's top oil and gas producers as well as Russian Energy Minister Alexander Novak.
Both Medvedev and Novak were confidential about another deal can be made, which the Russia natural gas would deliver to China before the end of the year.
At the meeting, it is officially announced the final agreement has been made.
The two companies have agreed on a formula. But the gas price is a key needing to negotiate.
Gas price has been the focus of the Russia and China during the many years of negotiation. The disagreement has led China turn to the Central Asian Energy.
There is potential that another agreement about the gas price and a contract would be signed under which Russia natural gas will be delivered to China in 2018-2020.
After the deal, China would have 38 billion cubic metres of gas flowing in its pipelines per year.