Russia and China Announce Joint Oil-Exploration Venture in Siberia

NEFTEYUGANSK, RUSSIAN FEDERATION: An undated picture shows the Prirazlomnoye oil well of Yuganskneftegaz, Yukos' main production unit , outside Nefteyugansk, western Siberia. Russia on 19 December was to strip crippled Yukos oil giant of its core production asset in an auction expected to be won by state gas behemoth Gazprom, putting a large slice of the energy industry back in government hands. Defying an 11th-hour US legal order barring the sale and Gazprom's bid, the Russian government was to sell off Yukos' crown jewel Siberian oil-pumping subsidiary, Yuganskneftegaz. 
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Clare Foran
Oct. 21, 2013, 3:10 a.m.

Rus­si­an na­tion­al oil com­pany OAO Ros­neft an­nounced Fri­day that it will part­ner with China Na­tion­al Pet­ro­leum to ex­plore and de­vel­op an oil field in east­ern Siber­ia, The Wall Street Journ­al re­ports.

“The oil pro­duced will be used to meet the en­ergy de­mand in east­ern Rus­sia and then ex­por­ted to China and oth­er Asia-Pa­cific coun­tries through the Rus­sia-China crude pipeline,” CN­PC said in a state­ment, call­ing the joint-ven­ture a “break­through reached by the two sides in up­stream co­oper­a­tion.”

The move sig­nals a shift in Rus­sia’s stance to­ward co­oper­a­tion with China in the field of oil pro­duc­tion and ex­plor­a­tion. Rus­sia has pre­vi­ously been re­luct­ant to grant Chinese in­vestors a stake in its na­tion­al oil fields. North Amer­ic­an shale-gas re­serves have de­creased de­mand for Rus­si­an oil and nat­ur­al gas, however, and forced the coun­try to look for new ways to grow the mar­ket for its vast en­ergy re­serves.


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