Rosneft and ChemChina to Start FEPCO feasibility study and Signed a Crude Supply Contract
Rosneft CEO Igor Sechin and China National Chemical Corporation Chairman Ren Jianxin have signed Heads of Agreement for cooperation in respect of Far Eastern Petrochemical Company (FEPCO) project.
The agreement provides for the entry of ChemChina into the FEPCO equity capital with a stake of 40% and for the proportional financing. The parties intend to conduct joint analysis aimed at the specification of niche markets for FEPCO products based on the capabilities of the partner that enjoys a robust position in the Asia-Pacific markets.
As part of the strategic partnership, Rosneft and ChemChina have signed a new one-year crude supply contract.
Following the signing of the documents, Igor Sechin said: "The agreement marks a new and important step in the development of FEPCO – one of the largest industrial complexes in Russia. Bringing ChemChina will enable Rosneft to optimize the project financing and co-organize the sale of high-margin products of the future complex at the premium APR markets."
NOTES FOR EDITORS:
On 22 October 2015, Rosneft, Pirelli and Synthos signed a Memorandum of Understanding aimed to approve the preliminary feasibility study results and continue to implement the cooperation project to build a plant producing synthetic rubber in Nakhodka within the petrochemical cluster of the Far Eastern Petrochemical Company. The document points out the completion of the pre-feasibility study development phase of the plant that is going to produce synthetic rubber in Nakhodka, including the process configuration options for the plant specifications, market research, evaluation of investment and operating costs.
FEPCO construction project envisages the creation of a modern petrochemical complex in the Far East which will allow: lay the foundation for the development of the petrochemical cluster; develop infrastructure and related production in the Far Eastern Federal District; substitute the exported feedstock with high added value products; get additional profit through the sales in the Asia-Pacific countries; create new jobs in the region.
Rosneft Information Division
Tel: + 7 (499) 517-88-97
25 June 2016
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