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. Last Updated: 07/27/2016

Yukos to Double Oil to China

Yukos, Russia's second-biggest oil producer, will double crude oil supplies to China to 1 million tons this year from 500,000 tons agreed on earlier, the company said in a statement Wednesday.

It said Yukos and China National United Oil Corp. are expected to sign an agreement on Thursday on supplies of an additional 500,000 tons of crude.

The two companies signed a memorandum earlier this year under which Yukos was to ship 500,000 tons of crude oil and 1 million tons of oil products to China this year as well as to refine crude extracted by Chinaoil in Kazakhstan.

During the visit of Chinese Prime Minister Zhu Rongji to Moscow, which began Wednesday, Yukos and oil pipeline monopoly Transneft will also sign an agreement with China on a feasibility study on a pipeline between the two countries.

The value of a 2,300 kilometers oil pipeline project from eastern Siberia to China via Mongolia has been estimated at $3 billion, the statement said.

In the first stage of the project, some of the crude extracted by Yukos in Eastern Siberia would be delivered to China, which would later be invited to participate in exploration of Russian oil fields.