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Rosneft will make additional supplies of crude to Kazakhstan as a payment for oil transit to China, Vedomosti reports. Kazakhstan's Pavlodar Oil Refinery will receive additional amounts of crude in exchange for the Rosneft's transit via the territory of Kazakhstan. According to a source close to Rosneft, it is "a more beneficial way for the company", including because of the fact that the company undertook to pay all the export dues. Rosneft has signed a preliminary agreement to transport Russian crude across Kazakhstan with Kazakhstan's national companies KazMunaiGas and KazTransOil these days. Initially, Rosneft was negotiating oil supplies to China through a swap of Russian and Kazakhstan oil: with Rosneft supplying 7 million tons of its oil to Kazakhstan's Pavlodar Oil Refinery in exchange for KazMuaniGas supplying the same amount of its oil via Atasu-Alashankow pipeline to China. It was expected that the swap scheme would come in effect starting from January 1, 2014. But a dispute arose between Rosneft and KazMunaiGas over how the export dues that could make up to 70-80 billion ruble ($2.1-2.4 billion) per year would be paid. Besides, signing of the final agreement on transportation of gas across Kazakhstan to China is expected to be timed to the conclusion of a new intergovernmental agreement between Russia and Kazakhstan. "It will take place before the end of the year", a Vedomosti source closed to the negotiations said. Vedomosti reports, that besides oil and gas supplies Rosneft and Kazakhstan are discussing the possibility of expanding the pipeline system for the transit to China. Trasneft company, interested in additional supplies for its new pipeline, used to be against the transit of Russian crude across Kazakhstan to China.
Rosneft will make additional supplies of crude to Kazakhstan as a payment for oil transit to China, Vedomosti reports.
Kazakhstan's Pavlodar Oil Refinery will receive additional amounts of crude in exchange for the Rosneft's transit via the territory of Kazakhstan. According to a source close to Rosneft, it is "a more beneficial way for the company", including because of the fact that the company undertook to pay all the export dues.
Rosneft has signed a preliminary agreement to transport Russian crude across Kazakhstan with Kazakhstan's national companies KazMunaiGas and KazTransOil these days.
Initially, Rosneft was negotiating oil supplies to China through a swap of Russian and Kazakhstan oil: with Rosneft supplying 7 million tons of its oil to Kazakhstan's Pavlodar Oil Refinery in exchange for KazMuaniGas supplying the same amount of its oil via Atasu-Alashankow pipeline to China.
It was expected that the swap scheme would come in effect starting from January 1, 2014. But a dispute arose between Rosneft and KazMunaiGas over how the export dues that could make up to 70-80 billion ruble ($2.1-2.4 billion) per year would be paid.
Besides, signing of the final agreement on transportation of gas across Kazakhstan to China is expected to be timed to the conclusion of a new intergovernmental agreement between Russia and Kazakhstan. "It will take place before the end of the year", a Vedomosti source closed to the negotiations said.
Vedomosti reports, that besides oil and gas supplies Rosneft and Kazakhstan are discussing the possibility of expanding the pipeline system for the transit to China. Trasneft company, interested in additional supplies for its new pipeline, used to be against the transit of Russian crude across Kazakhstan to China.
