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Last updated at: (Beijing Time) Wednesday, November 27, 2002

Russia to Export Oil by Way of China's Daqing: Report

Russia and China have recently reached an agreement that the two parties will lay in cooperation an oil pipeline running from Irkutsk in Russia to Daqing in the northeast of China. And after its completion, Russian oil can be pumped through the pipeline to Daqing and then to be exported to other Asian countries.


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Russia and China have recently reached an agreement that the two parties will lay in cooperation an oil pipeline running from Irkutsk in Russia to Daqing in the northeast of China, according to a report by Pravda. And after its completion, Russian oil can be pumped through the pipeline to Daqing and then to be exported to other Asian countries.

Russia enjoys a rich oil deposit in Siberia. However, the expensive transportation cost has all along hindered the development of the petroleum industry in Russia and many foreign companies stepped back at the sight of the cheap oil deposit because of its expensive transportation cost. And on a further comparison they'd rather import oil from the Gulf Area than from Russia. After China's entry into the WTO and with reforms made in some way about its oil industry the oil exporters in Russia see a glimpse of hope and like to tap for a wider space for their oil exportation without losing the chance.

As revealed, China and Russia have already reached an agreement to lay in cooperation an oil pipeline from Irkutsk in Russia to Daqing in China. So far, the two sides are making a study on the project with a demonstration being made on the questions of technology and capital. Russia and China may finally come to terms in December next year as Russian party expressed.

In line with the agreement reached by the two parties, the Yukos Oil Company, the second large one in Russia will put in 150 million US dollars for laying the pipeline of 1500 kilometers long in Russia. The Chinese side is to build 760 kilometers long pipeline by putting in some 50 million US dollars for the project. The pipeline will be put into trial operation in 2005 and by the time a yearly 20 million tons of oil can be pumped to China from Russia. And further by the year of 2010, the transporting capacity of the pipeline can be raised to 30 million tons a year.

By People's Daily Online


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