RusEnergy

MOSCOW, December 23 (RIA Novosti) - Russia's largest oil companies are preparing to fulfill intergovernmental agreements to export 10 million metric tons of oil to China in 2005, Vremya Novostei reported. According to Russian Railways vice president Salman Babayev, in January 2005, LUKoil will export (by railroad) 240,000 metric tons of crude to China, Sibneft will export 30,000 metric tons, and Yukos will export 280,000 metric tons. Indicatively Yukos will maintain its previous oil export level. According to Argus, Tomskneft, a Yukos subsidiary, exported approximately 280,000 metric tons of crude a month to China in November and December. Exporting oil on the railroad is more expensive than through pipelines, which led to problems finding a company to replace Yukos, which cut exports to China in October. Russian Railways president Gennady Fadeev came to the aid of the oil companies and lobbied the Economic Development and Trade Ministry to lower oil export tariffs. However, the government has not lowered the tariffs yet. Nevertheless, LUKoil president Vagit Alekperov and Gennady Fadeev are expected to sign an agreement on oil deliveries to China on December 23. The government began looking for alternative oil suppliers in October 2004. As a result, LUKoil, which had previously said exports to China were economically unviable, announced that it would begin trial exports. The company exported 70,000 metric tons of oil to China in November, and will export 100,000 metric tons in December. Sibneft also started exporting 30,000 metric tons of oil to China a month in November. President Putin said that the China National Petroleum Company could expect to cooperate with Gazprom.
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