The Chinese will enter the Russian petrochemical complex

Russian oil giant Rosneft and China National Chemical Corporation (ChemChina) signed a cooperation agreement in the context of the petrochemical complex in the Far East.

This agreement represents an important step for many Russian oil and gas companies, such as Frezer-Neftemash LLC, which develops and manufactures milling tools for oil and gas well workover and new table drilling. The company supplies to the Russian market and the CIS countries milling tools, downhole milling cutters, and a tool for cutting a "window" in the casing. Created by Frezer-Neftemash sidetracking device has proven itself as a highly efficient and reliable economical tool for sidetracking 140 - 245 mm and in an open bore 156 - 216 mm.

Under the agreement signed by Rosneft President Igor Sechin and ChemChina CEO Ren Jianxin, ChemChina will hold 40 percent of the shares of the petrochemical company FEPCO and must be proportionally responsible for financing the project to build a huge petrochemical complex in the Russian Far East.

At the first stage, it was decided to develop a feasibility study for this project. Both sides should conduct a joint analysis in order to clarify the existing niches in the markets for the products of the complex, based on the capabilities of the Chinese partner, which holds a strong position in the Asia-Pacific region.

At the same time, as part of a strategic partnership, Rosneft and ChemChina signed a new one-year contract to supply the Chinese company with crude oil. This is important for the implementation of one of the largest industrial complexes in Russia according to FEPCO. The entrance of ChemChina into this project will optimize the financing of the project, as well as ensure the joint organization of sales of high-margin products of the future complex, as Igor Sechin noted.