Rosneft and CEFC, a Chinese energy company, have signed an agreement to examine the potential construction of a petrochemical facility in Hainan province, China.
CEFC has agreed to purchase 14.16 percent of the Russian state-owned company and the two companies will set up joint working teams “to discuss technical configurations of the project as well as commercial and economic matters,” said Rosneft in a statement on Friday.
The joint project will analyse the petrochemical facility in Hainan to explore ways in which to monetize the materials. This will be the latest sign of strengthening ties between Russia and China.
Earlier this year, Rosneft and CEFC signed a strategic partnership deal to work together on exploration and production, oil refining and petrochemicals, crude oil and product trading, retail business, and financial services.
As volumes of crude oil being exported from Russia to China increase, Chinese companies are investing more into Russian energy companies, such as Rosneft, and other energy projects.