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. Last Updated: 07/27/2016

Rosneft Opens New Field With Eye on China

VANKOR OILFIELD, Krasnoyarsk Region — Rosneft opened a major new oil field in the Arctic on Friday that will allow the country to revive flagging output and carve a greater share of China’s growing energy market.

The Vankor field will supply Rosneft with 25.5 million tons, or 510,000 barrels, per day of oil when it reaches peak production in 2014. This is equivalent to nearly one-quarter of the state firm’s output last year.

“A new oil and gas province will be established here in the near future,” Prime Minister Vladimir Putin said at a ceremony to open the field, located more than 100 kilometers north of the Arctic Circle.

Putin said Vankor, which was opened after several delays, would feed into pipelines under construction to China and the Baltic Sea. China has agreed to lend $15 billion to Rosneft and another $10 billion to Transneft in exchange for supplies of 300 million tons of oil over two decades, a large part of which will originate from Vankor. Rosneft said in a statement that oil from Vankor, which it acquired in 2003, would also feed a major new petrochemical complex in the Far East. Putin said the field would also supply crude to the BTS-2 pipeline, which will bypass Belarus in delivering oil to the Baltic port of Ust-Luga.