Russian state oil firm Rosneft signed co-operation deals on Friday with Chinese oil firm CNPC and Asia's biggest refiner Sinopec during a visit to the Kremlin by Chinese President Hu Jintao. The heads of CNPC and Rosneft signed a long-term co-operation agreement while Sinopec and Rosneft agreed to jointly explore the Veninsky block of the Sakhalin-3 licence in the Pacific Ocean, off Russia's Far East coast.
China is keen to secure supplies of oil to fuel its fast-growing economy, but Russia - already the world's No 2 exporter - has held off making concrete promises to increase volumes to China or allow Chinese firms to buy Russian assets.
Rosneft has promised to raise oil deliveries by rail but China also wants Russia to commit to building a Chinese branch from its planned Pacific pipeline. Analysts say Russia is keeping its options open.
The agreement between CNPC and Rosneft said the two firms would study the possibilities of increasing supplies to China, possibly by using the Pacific route or the Atasu-Alashankou pipeline from Kazakhstan.
They also said they would begin discussions on possible partnership in exploration and production on Sakhalin Island on Russia's Pacific coast, where Rosneft has several licences.
CNPC said it was keen to secure gas supplies from Rosneft's Sakhalin-1 field as soon as possible.
The two firms would also examine the possibility of doing joint exploration and production projects in a third country.
Rosneft's agreement with Sinopec was smaller and more specific, but covered only exploration work in the Veninsky block of its Sakhalin-3 project.
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