Rosneft and ChemChina signed an agreement on the FEPCO project at G20

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One of the largest Russian oil companies Rosneft and China National Chemical Corporation (ChemChina) have signed an agreement on the fulfillment of the Far Eastern Petrochemical Company (FEPCO) project at the G20 summit in China’s Hangzhou. According to a Russian news agency TASS, the two companies decided to set up a joint venture (JV) to simplify the operations under the project.

The agreement, signed by Rosneft CEO Igor Sechin and ChemChina CEO Ren Jianxin, has quite a general character. It confirms the intention of both parties to take part in the FEPCO project, divides Rosneft and ChemChina’s shares as 60 per cent and 40 per cent, and specifies the schedule of implementation. The parties will discuss the operation structure and financing issues at the next round of talks.

The top-managers of both companies mentioned that the document is highly important for Russia and China as a new milestone of partnership between two countries. The FEPCO project is expected to add to the development of infrastructure of the Far Eastern region and to become one of the most promising petrochemical projects in the Asia-Pacific market.