Russia-China oil cooperation agreement ratified by State Duma, State Duma Committee for Energy

Release Date: 2009-07-03

State Duma ratifies the intergovernmental agreement between Russia and China for cooperation in the oil sector

The State Duma has adopted the Federal Law 220896-5 “On ratification of the Agreement between the Government of Russia and the Government of the People’s Republic of China for Cooperation in the Oil Sector” on a plenary session on July 3, 2009.

The intergovernmental agreement has been approved by Russia’s Government Board on April 13, 2009, and signed in Beijing by Igor Sechin, the Vice Prime Minister of Russia, and Wang Qishan, Vice Prime Minister of the State Council of China, on April 21, 2009. According to the Government Decree 521 of June 23, 2009, the agreement was presented before the Federal Council by Sergey Shmatko, Minister of Energy of Russia.

“Implementation of the Agreement will stimulate intensive development of East Siberia oilfields, development of industrial infrastructure of East Siberia and the Far East, create new jobs and social infrastructure”, believes Yuri Lipatov, Chairman of the State Duma Committee for Energy.

The objective of the Agreement is to design, construct and operate the Skovorodino-Mohe oil pipeline with a capacity of 15 mln t of oil yearly and consists of land sites on the territories of both Parties (from Skovorodino to the Chinese border in Russia) and an underwater passage through the Amur river.

Skovorodino-Mohe oil pipeline is a branch of East Siberia-Pacific Ocean pipeline system created to diversify the Russian oil exports from the oilfields in Western and Eastern Siberia. China is the main market for the designed oil route.

Design and construction of the underwater section in Amur river is done by officially entitled organizations from both countries, involving Russian and Chinese contractors. Russia is responsible for allocation of special closed borderline zone for the time of construction, as well as for functioning of the temporary checkpoint on the state border with Russia, for navigation, staff and equipment transport within the construction zone. The Chinese party is to set up a similar closed zone in China. Conditions of oil delivery from the entitled Russian organization and the entitled Chinese organization during the operation period are under discussion.

Type:	NORMAL
Company:	State Duma Committee for Energy
Country:	Russian Federation