OREANDA-NEWS China’s Beijing Gas Group has bought 20 per cent of a Russian oil and gas field from state-run Rosneft for $1.1bn, in a deal that also gives the Russian energy producer access to the Chinese domestic gas market. Beijing Gas’ stake in Verkhnechonskneftegaz gives the company a slice of one of the largest-producing fields in eastern Siberia and access to the Eastern Siberia–Pacific Ocean oil pipeline that connects Russia with China, Japan and South Korea.

In a statement announcing the sale, Rosneft said the deal gives it “the opportunity to enter a promising domestic gas market in China, including the final consumer by means of swap gas supplies.” Rosneft and Beijing Gas are also considering options for deeper cooperation in eastern Russia involving hydrocarbon exploration, field development and gas production, the company added.

The sale, which was first agreed in November 2016, values the field at $3.20 per barrel of hydrocarbon reserves, Rosneft said. The field, which currently produces 8.5m tonnes of oil a year, has reserves of 173m tons of crude oil and gas condensate and 115bn cubic meters of gas.