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Rosneft, Beijing Gas Group sign agreement on gas cooperation

The document was signed following the results of the 21st meeting of the heads of the governments of Russia and China Dmitry Medvedev and Li Keqiang

ST. PETERSBURG, November 7. /TASS/. Russian state owned oil company Rosneft and Beijing Gas Group have signed an agreement on cooperation in the gas sector. The agreement includes the acquisition of 20% in Verkhnechinskneftegaz company (Rosneft subsidiary) by Beijing Gas Group.

The document was signed following the results of the 21st meeting of the heads of the governments of Russia and China Dmitry Medvedev and Li Keqiang.

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Rosneft, Beijing Gas sign deal on acquisition of 20% in Rosneft subsidiary

Verkhnechonskneftegaz is a subsidiary of Rosneft exploring and developing Verkhnechonskoe oil and gas condensate field, one of the largest fields in East Siberia. The company is also an operator of licensed sites of Rosneft in the Irkutsk region.

In summer of 2016, Rosneft and Beijing Enterprises Group Company signed an agreement setting the terms of cooperation as part of the Verkhnechonskneftegaz project. In particular, the parties agreed on the basic terms of the potential transaction for the sale of 20% of Verkhnechonskneftegaz to a company which is part of the Beijing Gas Group. The parties planned to sign a binding agreement before the end of 2016.

In 2015, Rosneft produced 8.6 million tonnes of oil at the Verkhnechonskoe oil and gas condensate field (which is 4.9% more than in 2014).

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