Ownership of the ChemChina Petrochemical Corporation (CCPC) and work together in the Far-East Russian petrol company Rosneft and China National Chemical Corporation (ChemChina) agreed to share Petrochemical Company (FEPCO).
The documents were signed by the Chairman of Rosneft Management Board Igor Sechin and the Chairman of ChemChina Ren Jianxin during the visit of the Russian President Vladimir Putin to Beijing and in presence of the President of People’s Republic of China Xi Jinping.
The two companies signed a Heads of Agreement that gives Rosneft 30% ownership of CCPC. The agreement outlines the preliminarily agreed price, the transaction structure and the corporate governance issues.
A memorandum of agreement was also signed regarding ChemChina’s proposed acquisition of a majority stake in FEPCO project as well as the key stages of such investment. By signing the memorandum, Rosneft involves a strategic partner for FEPCO project and makes a major step towards its development.
Rosneft and ChemChina signed a memorandum agreeing to supply to CCPC ESPO, Sokol, alternative crudes and other feedstocks as mutually agreed by the parties. The parties will hold negotiations on signing a long-term contract for 4 million tons delivered within three years with an option to extend supplies and increase the contract duration.
Sechin said: “The achieved agreements are indicative of a special level of cooperation with our Chinese partners. Joining efforts will further improve efficiency of our work by developing cooperation in all areas including such strategically important projects as FEPCO.”