China's Petroleum Corp. Eyes Cooperation with Russia

China National Petroleum Corporation (CNPC) General Director Chen Geng said in an exclusive interview with Interfax that the company's cooperation with Russia in the energy sector definitely has good prospects. He said a branch of the East Siberia-Pacific Ocean (ESPO) oil pipeline to China will be built.

"On March 21, we hope to sign a document with Transneft regarding a feasibility study for the construction of an ESPO branch to China. This move confirms that both parties will begin jointly working on a feasibility study under an official agreement. All this will start as soon as the Russian government confirms the ESPO construction design," he said.

Until the pipeline is built, CNPC will continue to purchase Russian oil delivered via other routes. "Oil deliveries from Russia to China by rail have been steadily on the rise over the past few years. Of the 5.18 million tonnes of oil delivered for CNPC via the railway's eastern section in 2005, 4.4 million tonnes were shipped by Rosneft and another 780,000 tonnes by Lukoil," the CNPC president said.