Rosneft and ChemChina agree to co-develop coating plant

Russian Rosneft and the China National Chemical Corporation (ChemChina) have signed an agreement on the development of a project for the construction of a polymer coating plant. The document was signed by Rosneft Vice President for Energy, Localization and Innovation Andrey Shishkin and President of Haohua Chemical Corporation Chen Hong in the presence of Rosneft Chief Executive Officer Igor Sechin.
The document defines the stages of further implementation of the project for the construction of a plant for the production of polymer coatings and special paints, as well as the conditions for the creation of a joint venture.
As a result of the project implementation, the largest enterprise will be created in Russia for the production of special coatings for marine vessels of different classes including Arctic class. The products planned for production at the plant will find its application in the work of the shipbuilding complex Zvezda in the Far East of Russia, created as designated by the President of the Russian Federation, Vladimir Putin.
In December 2016, Rosneft and ChemChina signed an agreement on the basic conditions for the creation of the joint venture. In accordance with the document, the parties will create a joint venture in the territory of the advanced development of Bolshoi Kamen in Primorsky Krai of Russia to build a plant and produce polymer coatings and paints with an annual capacity of up to 50,000 tons of products, as well as research and development. In this regard, Rosneft and ChemChina will conduct a feasibility study of the project and the necessary arrangements for the preparation of the joint venture.
Further to this announcement, Rosneft and Hyundai Samho Heavy Industries have resolved to strengthen their technological cooperation. Under the agreement, the South Korean company will provide technical support in the design and construction of Aframax class vessels at the Zvezda shipyard in Bolshoy Kamen. The agreement is a legally binding document. The document was signed as a part of the development of the agreement, under which a joint venture “Zvezda-Hyundai” was established in May 2017 between Shipbuilding Complex Zvezda and HSHI in the field of engineering and project management.
Under the agreement, HSHI provides a list of technical support for the joint venture for the design and construction of Aframax type tankers, including those using capable of running on natural gas. HSHI will make sure that the working design documentation corresponds to the basic design of the vessel, which is transferred to the capital of the joint venture.
The establishment of JV will enable HSHI, together with the Russian partner, to implement ship construction projects in the new promising segment of the shipbuilding market – the construction of Green Aframax tankers. Cooperation with the South Korean company will allow Rosneft to create an effective project management system in the field of large-capacity shipbuilding. The JV will be another impetus for Russia to localize the production of commercial vessels and marine equipment since the design documentation provides for the creation of conditions for a gradual localization of a full cycle of designing tankers of the Aframax type.
“Technological partnership with the world’s largest shipbuilding company will allow us to acquire the necessary competencies in the area of engineering support and management of ship construction projects. This cooperation will ensure DTSS and Zvezda Shipbuilding Complex access to unique technologies for the production of advanced marine equipment, such as modern environmentally friendly Aframax type tankers that run on NGV fuel, and will open prospects for the localization of production and development of the shipbuilding cluster in the Far East of Russia,” said Rosneft Chief Executive Officer Igor Sechin.
The shipbuilding complex Zvezda is being created on the basis of the Far Eastern Zvezda plant by the consortium of Rosneftegaz, Rosneft and Gazprombank. The project of the complex involves the construction of a heavy fitting dock, dry dock, full-cycle production facilities, and workshops for the construction of offshore marine equipment. The shipbuilding complex Zvezda will produce large-capacity vessels, elements of offshore platforms, ice-class vessels, special vessels and other types of marine equipment.
Finally, Rosneft and the UK’s BP have signed an agreement on strategic cooperation in gas and a Memorandum of Understanding (MoU) in respect of the sale and purchase of natural gas in Europe. The two companies agreed to develop integrated cooperation in gas and aim to jointly implement gas projects in Russia and abroad focused on gas exploration and production, LNG production, supply and marketing.
Rosneft and BP also reconfirmed their mutual interest in cooperation in European gas marketing. According to the MoU, Rosneft and BP’s wholly-owned subsidiary BP Gas Marketing Limited will enter into a long-term sales and purchase agreement for the supply of natural gas produced by Rosneft in order to ensure delivery of additional Russian gas supplies to European markets starting from 2019. This MoU is another milestone in the development of strategic cooperation between Rosneft and BP.
“Rosneft already is the largest independent gas producer in Russia and intends to further increase production levels in the coming years,” Rosneft CEO Igor Sechin said. “Cooperation with BP would provide Rosneft with both a new efficient gas monetization channel and the conditions required for the development of a new resource base including hard to recover gas reserves.”
“BP is pleased to expand its ongoing relationship with Rosneft through this agreement,” President of BP Russia David Campbell added. “Shifting to gas is one of the pillars of BP’s strategy. It is important in order to meet the increasing demand for cleaner energy. Gas is a growing proportion of BP’s portfolio and by the middle of the next decade we expect around 60% of our production to be gas, compared with around 50% today.”
The parties agree that Russian state support for an effective gas supplies mechanism is key to the successful implementation of the MoU.