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Transneft’s special general meeting adopts changes in oil supplies to China

Transneft is a Russian state-owned business responsible for the national oil pipelines

MOSCOW, April 17 (Itar-Tass) —— The Russian Transneft company’s special general meeting has adopted changes in the contract on oil supplies to China, the company said in a statement on Tuesday.

Under the decision, the Transneft shareholders adopted amendments to the contract with Rosneft and the Chinese National Petroleum Company (CNPC).

Proceeding from the addendum, Transneft will guarantee a discount of the oil supply price to China, the company’s statement wrote, adding that the index will make up 1.5 U.S. dollars per barrel of oil.

Owing to the repayment of a debt on the loan granted to the China Development Bank, Transneft will supply six million tonnes (plus-minus 4.1 percent annually) in the period up to 2030, the company’s statement wrote.

In the mean time, China must pay off a debt worth about 134 million U.S. dollars to Rosneft and Transneft, the company underlined, explaining that China had accumulated the debt in the period of controversies.

Within the 20 years, the total value of Transneft’s oil supplies to China will reach about 90 billion U.S. dollars with the setting price of 100 U.S. dollars per barrel, the company said in the document.

Transneft is a Russian state-owned business responsible for the national oil pipelines. It owns the largest oil pipeline system in the world, with a total network length of almost 50,000 kilometres. Transneft transports about 93 percent of the oil produced in Russia.

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