Rosneft and China Petrochemical Corporation (Sinopec group) signed a Memorandum of understanding in the area of cooperation on gas and petroleum chemicals projects to be developed in East Siberia. The document was signed by Rosneft Chairman of the Management Board Igor Sechin and Sinopec Group Chairman Wang Yupu in the presence of the Prime-minister of the Russian Federation Dmitry Medvedev during his working visit to China and Premier of the State Council of the People's Republic of China Li Keqiang.

The agreement will boost the cooperation of Rosneft and Sinopec in the area of the development of the Yurubcheno-Tokhomskiy hydrocarbon cluster’s resource base. The document envisages a detailed pre-feasibility and concept design study with respect to a potential gas and petroleum chemicals joint venture. The scope of the envisaged venture may include a conversion of natural gas and its liquid fractions to ethylene and propylene with an integrated production of high-performance polymers and co-polymers.

The processing capacity of the integrated complex in Boguchany (Krasnoyarsk Territory) and Angarsk (Irkutsk region) is expected to be up to 10 bcm of natural gas per annum with an annual output of up to 3 million t of ethylene and around 6 million t of polymers and other petrochemicals totally. The project targets primarily Russian and Chinese markets.

About Rosneft

Rosneft is the leader of Russia’s petroleum industry and the world’s largest public oil and gas
company by liquid hydrocarbon production and reserves. The Company’s core operations are in hydrocarbon exploration and appraisal, production of oil, gas and gas condensate, offshore developments, refining, marketing of oil, gas and oil products inside and outside Russia, and investment activity.

Rosneft’s exploration and production geography spans across all key oil and gas provinces in Russia, namely Western Siberia, Southern and Central Russia, Timano-Pechora, Eastern Siberia and the Far East. The Company also implements projects in Kazakhstan, Algeria, Venezuela, Brazil, Vietnam, the UAE, Canada, and in the Gulf of Mexico. Offshore projects, including in the Arctic, take a special place in Rosneft’s portfolio. Rosneft has joined forces with ExxonMobil, Eni and Statoil to develop Russia’s offshore resources.

About Sinopec

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group is a state-owned company solely invested by the State, functioning as a state-authorized investment organization in which the state holds the controlling share.