Rosneft to double oil flows to China in $270 billion deal

Discussion in 'China' started by t_co, Jun 22, 2013.

  1. t_co

    t_co Senior Member Senior Member

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    Rosneft to double oil flows to China in $270 billion deal | Reuters

    China currently imports about 5mm bbl/day. Upping Rosneft's exports to 600k, and adding capacity for 300k more, would allow China to withstand a six month closure of the Straits of Malacca without building up additional oil supplies, as opposed to its current 90-day oil inventory policy.

    If China could sign similar deals with Kazakh oil producers and develop its own offshore fields, India's vaunted advantage in the IOR over Chinese energy supplies could become a moot point.
     
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  3. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    China consumes 10m bpd, 300,000 isn't going to make a bit of difference if India cuts off IOR. Rosneft is cut down to hard to drill wells which is putting them in the red, these remote Arctic wells aren't going to increase profits. It is just China flushing money down a sinking ship.
     
  4. arnabmit

    arnabmit Homo Communis Indus Senior Member

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    Good if this happens... then China can give up it's India & IOR security obsession and let us live in peace.

     
  5. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    The Russian supply of 900,000 would be less than 10% of your total consumption.
     
  6. t_co

    t_co Senior Member Senior Member

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    Chinese domestic production accounts for 40% of total consumption. Throw in fracking, and internal (and USGS) projections say that will hit 50% of consumption. The Russian supply of 900,000 bbl/day would account for about 20% of the remainder. Kazakh supplies would add another 15-20% of remaining imports. This means that in times of crisis, China's strategic petroleum reserve only has to carry 20% of total Chinese energy consumption, which gives it a 6-8 month buffer.

    Plus, China has surge contracts with Venezuela as well. The oil would be more expensive to ship through the Panama Canal, but it is doubtful whether India could interdict Chinese oil shipments going around the other side of the world.
     
  7. arnabmit

    arnabmit Homo Communis Indus Senior Member

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    Why would India want to?
     
  8. t_co

    t_co Senior Member Senior Member

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    Some people here seem to imply that part of India's strategy vis-a-vis China should be to threaten Chinese maritime energy shipments.
     
  9. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    Okay, I suppose considering most of the oil production happens in China.

    What about refining?
     
  10. t_co

    t_co Senior Member Senior Member

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    China has about as much refining capacity as the United States.
     
  11. arnabmit

    arnabmit Homo Communis Indus Senior Member

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    During war? Maybe... not to lay siege, but to cause inconvenience.

    Otherwise, no way during peace time! Anyway we would have permanent sonobuoys off coast INS Baaz to monitor surface & sub-surface activity to check aggressor entry into IOR, with the Aussies checking the Jakarta strait from Christmas island.

    Please understand that India's entire Armed Forces activities are reactionary, not aggressive.

     

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