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16:27 GMT +3 hours18 December 2014
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Rosneft to Boost Crude Supplies to China

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Russian state-owned oil giant Rosneft has agreed to boost crude supplies to China, Rosneft spokesman Vladimir Tyulin said on Tuesday, without specifying the amounts involved or delivery routes.

BEIJING, February 19 (RIA Novosti) – Russian state-owned oil giant Rosneft has agreed to boost crude supplies to China, Rosneft spokesman Vladimir Tyulin said on Tuesday, without specifying the amounts involved or delivery routes.

The deal concludes a three-day visit by Rosneft President Igor Sechin to China.

Rosneft and oil pipeline monopoly Transneft currently deliver 15 million tons of crude to China annually via a Russia-China branch of the East Siberia–Pacific Ocean pipeline under a deal signed in 2009. Deliveries started in 2011. In return for long-term crude supplies, Rosneft received $15 billion and Transneft $10 billion in loans from Chinese banks in 2009.

Rosneft is once again cash-hungry as it absorbs the cost of buying up TNK-BP, the Russo-British joint venture, which is costing it over $50 billion.

China has said on numerous occasions it wants more Russian oil.

An oil industry source previously told Prime news agency Rosneft was considering supplying crude to China via the Atasu-Alashankou pipeline through Kazakhstan.

Rosneft also discussed the possibility of Chinese companies participating in projects to develop hydrocarbon deposits on the Russian continental shelf, Rosneft said in a statement.