BEIJING (Sept. 9, 2015) — Russian oil firm Rosneft Oil Co. has agreed to sell majority control of its Far-East Petrochemical Co (FEPCO) project in Nakhodka, Russia, to China National Chemical Corp. (ChemChina), which will become a key strategic partner in the project that includes synthetic rubber.
Rosneft Chairman Igor Sechin and ChemChina Chairman Ren Jianxin signed a memorandum of understanding (MOU) for co-operation in the Rosneft project during Russian president Vladimir Putin's recent visit to Beijing.
“By signing the memorandum, Rosneft involves a strategic partner for FEPCO project and makes a major step towards its development,” the release said. The transactions contemplated are subject to due diligence and the relevant corporate and regulatory approvals, Rosneft said.
Tire-maker Pirelli & C. S.p.A. — which ChemChina is in the process of acquiring — is a key R&D partner in the FEPCO project, which aims to produce, among others, styrene butadiene rubber for “green” tires.