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China National Petroleum Corp (CNPC) is in talks to pay up to $3 billion for a stake in Rosneft but wants better Chinese access to Russian oil in return, according to sources close to the matter.
CNPC, parent of New York and Hong Kong-listed PetroChina, would invest a maximum of $3 billion for a stake in Rosneft, which hopes its upcoming IPO will value it at as much as $80 billion, sources told Reuters.
CNPC expressed the interest only on condition Rosneft pursues further co-operation with the Chinese side, one of the sources said. Another source close to the situation later told Reuters conditions included a joint venture to develop the Vankor oilfield in Siberia, significant co-operation in eastern Siberia, and a long-term crude supply contract. "Although CNPC is interested in up to $3 billion, it did put in a very significant condition on that," the source said. Rosneft has not yet agreed on the terms and has shown no signs that it will, he said.

Copyright Reuters, 2006

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