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CNPC negotiates working on Russian shelf with Rosneft, Gazprom Neft

The Chinese company is interested in offshore projects in Russia

© EPA/SERGEI ILNITSKY

MOSCOW, May 30. /TASS/. China National Petroleum Corporation (CNPC) is interested in participating in projects on the Russian shelf and is currently in talks with Rosneft and Gazprom Neft, Board Chairman of China National Petroleum Corporation Wang Yilin said on Monday in an interview with Rossiya 24 TV Channel.

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"The Russian shelf is very rich in oil and gas reserves, so we are extremely interested in participating in shelf projects in Russia. With we have approached Rosneft and Gazprom Neft with partnership proposals; the talks are in progress," he said.

However, according to Wang Yilin, there are reasons why "there are no breakthroughs in this direction. "Firstly, the projects that were proposed to us are at the earliest stage of development. As a result, require a significant investment that we believe would be risky at current oil prices. Secondly, strict partnership conditions that seriously limit China's capabilities in managing these projects," he said, adding that "the company is interested in offshore projects in Russia."

Earlier, Deputy Prime Minister Arkady Dvorkovich said that Russia was ready to consider the possibility of providing China with a 50% share in oil and gas fields development projects, excluding shelf project where the companies could acquire minority interests.

The head of Rosneft Igor Sechin said earlier that the Russian company was discussing questions considering exchange of assets with Chinese partners.

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