We intend to establish an association with Gazprom and Rosneft and we signed a mutual memorandum of understanding regarding the common exploitation of four oilfields located in Russia and China. Over the last six years we have received deliveries from Yukos and, in the last two years, from Lukoil. Transportation difficulties have significantly affected this source of supply and we hope the Russian and Chinese governments can soon solve the issue of the construction of the pipeline between Russia and China.
Thus far, Sinopec has no intentions of buying shares of Rosneft but I know other Chinese companies are doing it. I am also aware of the interest of some companies in buying the petrochemical company Angarskaya that Yukos will soon have to sell. In order to know which they are, it is necessary to get in touch with the Development and Reforms State Committee of the People’s Republic of China. Sinopec established an association with Shell in Sajalin linked to gas. We are willing to expand that cooperation for the ‘Sakalin 2’ project for gas exploitation. We are talking about one billion cubic meters per year as part of this operation. We are willing to invest in infrastructure and to participate in construction.

Vremya Novostyey (Russia)

" Sinopec ждет ’восточную трубу’ ", by Mu Shuling, Vremya novostyey, June 10, 2005.