Over 200 agreements signed as part of St Petersburg economic forum
The St Petersburg International Economic Forum (SPIEF) saw 205 deals signed by various companies. Russian oil major Rosneft (ticker: RNFTF) was one of the most active companies at the event, signing 58 agreements, according to the company. In total, the 205 deals amounted to $293.4 billion, according to Rosneft.
Attendance at the conference was up this year after many Western companies chose to decline their invitations to the annual forum held in St Petersburg due to Russia’s involvement in Ukraine. Many European companies attended this year’s forum, although U.S. companies still abstained.
Rosneft signed several major deals during the forum in all sectors of its business. In E&P, the company sold a 20% interest in the Taas-Yuryakh Neftegazodobych project, which will develop one of the largest gas fields in eastern Siberia. The company also signed Memorandums of Understanding (MOU) with Venezuela’s PDVSA and Indonesian Pertamina to expand cooperation in both countries.
Rosneft and E.ON Russia signed a contract for gas supply. The contract provides for supply of 4.4 bсm of gas within 5 years. This resource will be directed to Surgutskaya GRES-2.
Also Rosneft and EuroChem signed a Memorandum under which the Parties intend to cooperate on the monetisation of hydrocarbon resources within the North-Eastern block of the Rospan East Urengoy licence area. Commercial contracts are expected to be signed for a 10 year period, with first gas shipments of 400 mcm scheduled for 2018.
Moreover, Itera, a 100% Rosneft subsidiary signed an agreement with General Electric during the St Petersburg forum. The parties agreed to evaluate opportunities for potential cooperation in natural gas processing using GE technology for low-tonnage liquefied natural gas (LNG) production.
Rosneft and China National Chemical Corporation (ChemChina) signed a contract for crude oil supplies to the Chinese company. The contract envisages the delivery to China of 200.000 t of crude oil on a monthly basis. Moreover, within SPIEF-2015 Rosneft and ChemChina signed a Memorandum of Understanding regarding the planned purchase by Rosneft of 30% stake of ChemChina Petrochemical Co. Ltd (CCPC).
Another agreement in the area of oil products supplies was signed between Rosneft and the Egyptian General Petroleum Corporation. The signed document envisages cooperation in the area of Gasoil, Gasoline, Fuel Oil, LPG & Bitumen supplies allowing Rosneft to expand its portfolio of products delivered into North Africa.
The company also made a deal with BP to restructure its refinery JV, German Ruhr Oel GmbH (ROG) while in St Petersburg. The document envisages restructuring the JV by dividing between the parties shares in four refineries and associated infrastructure. As a result of the planned deal Rosneft will double its shareholding the Bayernoil refinery – to 25% from 12.5%; MiRO refinery – to 24% from 12%; PCK Raffinerie – to 37.5% from 18.75%. BP in exchange will consolidate 100% of the equity of the Gelsenkirchen refinery and the solvent production facility DHC Solvent Chemie. The restructuring of Ruhr Oel GmbH will enable Rosneft and BP to re-focus their refining and petrochemicals strategies in Germany.
The company also signed deals to increased regional cooperation among the Russian regions in industry, finance, investment and social matters. The agreements will contribute to creating advantageous economic, legal and organizational framework for integrated development of the regions.