Rosneft warns China over oil supply post 2010

MOSCOW (Reuters) – State-controlled Rosneft, Russia’s largest oil firm, said on Tuesday it will not renew its existing crude oil supply contract to China after 2010 unless China offers better terms.

The comment came as Russia, the world’s second-largest crude exporter, is building its first pipeline to China. Rosneft is due to deliver the bulk of crude via the 600,000 barrels per day link, which is due to come on stream at the end of 2008.


But Rosneft Chief Financial Officer Peter O’Brien told the Reuters Russian Investment Summit that the company may decide against sending crude via the route as other export options were more attractive.

“The current contract we have is really not competitive with other netback options. We will not extend it as such after 2010,” said O’Brien. Netback is a measure of profitability of crude oil exports.

Reuters