OREANDA-NEWS. November 24, 2010. In St. Petersburg, the Sovcomflot Group (SCF) and China National Petroleum Corporation (CNPC) signed a strategic long-term cooperation agreement. The document was signed by the President and CEO of Sovcomflot, Mr. Sergey Frank and the President of CNPC Mr. Jiang Jiemin, in the presence of Mr. Igor Sechin, Deputy Prime Minister of the Russian Federation, and Mr. Wang Qishan, Vice-Premier of the State Council of the People's Republic of China, as part of a regular dialogue between Russia and China on energy matters.
 
The agreement is the result of consistent joint work between Russian and Chinese specialists from SCF and CNPC (represented by its subsidiary - PetroChina International) aimed at the development of steadily growing and mutually beneficial cooperation between SCF – one of the world’s leading tanker shipping companies, and CNPC – one of the largest oil and gas companies in the world. At present, the Chinese economy is almost equal to the US in terms of the level of its energy consumption, while in terms of its rate of growth, it is the most dynamic developing country.
 
In addition to the existing contracts, the parties agreed to develop a long-term partnership in the sphere of seaborne energy solutions, with the SCF fleet serving the continually growing Chinese imports of hydrocarbons. Taking into account the significant experience gained by Sovcomflot in developing the transportation of hydrocarbons in the Arctic seas, SCF and CNPC agreed upon the format for coordination in utilising the transportation potential of the Northern Sea Route, both for delivering transit shipments of hydrocarbons and for the transportation of oil and gas from Russia’s developing Arctic offshore fields.
 
SCF, as one of the world’s shipping leaders, measured by the volume of its tonnage and by the quality of commercial and technical management of its fleet, decided to take advantage of an option to enter the sector of large-capacity VLCC tankers (of more than 300,000 dwt), which will be employed under long-term contracts for the transportation of CNPC cargoes. Vessels of this type will steadily expand the existing fleet structure of SCF Group and will strengthen its competitive ability in the world tanker market.
 
The agreement provides for further development of the Russo-Chinese cooperation in enhancing the quality and safety standards for the seaborne transportation of hydrocarbons. It is proposed that Sovcomflot will provide assistance to its Chinese partners in training maritime specialists, on the basis of utilising SCF’s vessels, using first-class corporate training and simulators centres, and the facilities of maritime academies supported by the Group.