Russia’s largest oil producer Rosneft has entered into a five-year crude oil supply deal with CEFC China Energy Company Limited.
CEFC China is a private collective enterprise with energy and financial services as its core business.
State-owned Rosneft said on Monday that its board of directors had agreed to supply the Chinese company with 60.8 million tons of oil over the five-year period.
Deliveries will start from January 1, 2018, the Russian company added in a brief regulatory filing on Monday.
According to a report by Reuters, this deal will make CEFC a top-10 global oil merchant and a dominant player in the ESPO crude market.
The oil supply contract comes only two months after CEFC bought a 14.2 percent stake in Rosneft in a deal valued over $9 billion, the Financial Times reported.
Rosneft’s partnership with CEFC China includes a strategic cooperation framework agreement signed back in August. With this deal, the two companies agreed to expand opportunities for investment in the Chinese market and Asian-Pacific region and create favorable conditions for the Chinese and Russian energy industry and economic trade cooperation.
In related news, Rosneft earlier this week completed drilling of “ the world’s longest well ” from the Orlan platform at Chaivo field in the Sea of Okhotsk. The length of the well with horizontal completion was 15,000 meters which, according to the company, was a world record.
Offshore Energy Today Staff