FT: Rosneft proposes Chinese company take stake in Russian oilfield

Rosneft is proposing that China take a stake in one of its largest oilfields, in a deal that would further deepen energy ties between Moscow and Beijing at a time when the future of western companies in Russia is uncertain.

The deal for a stake in Vankor, Rosneft’s third-largest onshore production subsidiary, would mark the most significant Chinese equity participation in Russia’s onshore oil industry to date.

Russia’s President Vladimir Putin unveiled the proposed Rosneft deal on Monday at a ceremony to mark the start of work on another landmark project in Chinese-Russian energy co-operation: the Power of Siberia pipeline that is intended to deliver $400bn worth of gas from Russia to China in the coming decades.

At a meeting with Zhang Gaoli, Chinese vice-premier, Mr Putin said: “Mr Sechin [the president of Rosneft] said he has proposed that you become a shareholder in one of our biggest oil production companies in the north of Russia. The state authorities support this idea and we would welcome your participation.”
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