OREANDA-NEWS. March 15, 2010. Discussions between SCF (Sovcomflot) Group (Russia) and PetroChina International (China) on further deepening and developing mutually beneficial cooperation took place in Beijing.

The SCF Group delegation, comprising the Sovcomflot and Novoship representatives, was headed by Mr. Sergey Frank – Sovcomflot President and CEO. The Chinese delegation was led by Mrs. Wang Lihua – President of PetroChina International.

SCF Group holds the leading position among foreign shipping companies in servicing the demands of PetroChina for the transportation of oil. The cooperation between the two groups is based on long-term contracts and at present includes the transportation of crude oil by Suezmax tankers.

During the talks the parties discussed a number of projects, the implementation of which will allow an increase in the number of the Sovcomflot ships operating eastbound to China. This is in line with the Sovcomflot Development Strategy for 2010-2015 which outlines the diversification of energy transportation geography, including Asia-Pacific region. The parties agreed to develop cooperation in seaborne transportation of oil products by the SCF Group’s fleet.

The development of relations between Russia’s major tanker carrier and the world’s leading importer of hydrocarbons is gaining momentum against the background of China’s constantly growing share of energy importation and consumption, and within the framework of the strengthening business partnership of Russian and Chinese oil and gas corporations.

PetroChina International Co., Ltd. – is China’s state-owned oil company and the world’s largest company, measured by market capitalisation (USD 370 billion, as at 31.12.09), with its headquarters in Beijing. PetroChina was established in 1999 as the listed arm of China National Petroleum Corporation (CNPC). The company has assets in oil production, oil refining, oil chemicals and natural gas. The company is engaged in oil exploration, oil development and production; as well in oil refining, oil transportation; in the distribution of oil and oil products, oil chemical products and in selling natural gas. The company’s profit for the period from January to June 2009 amounted to CNY 50.5 billion (USD 7.4 billion) as compared to the profit of CNY 54.4 billion gained in 2008.
PetroChina employs 446,300 people.

Sovcomflot (SCF) Group – is one of Russia’s largest infrastructure enterprises. Its fleet comprises 147 vessels of more than 10 million tonnes (dwt) in total; its current shipbuilding portfolio includes 13 ships of an aggregate deadweight of 1.1 million tonnes (dwt);
• The average age of vessels in the tanker fleet is seven years (the world average age is 12 years);
• SCF Group is a world leader in the product carrier segment; it is the second largest in the Aframax tanker segment and the fourth largest in the Suezmax tanker sector;
• The company owns the largest ice-class fleet, being No.1 in the segment of the Arctic shuttle tankers and ice-classed LNG tankers;
• The Group’s services include not only transporting hydrocarbons for its customers, but also trans-shipping crude oil via FSO facilities, terminal management and developing effective logistics for transporting energy, and providing supply vessels services to drilling rigs and offshore platforms.