MOSCOW, March 23 (RIA Novosti) - State-owned oil company Rosneft and China National Petroleum Corporation will establish two joint ventures by the end of 2006, the Rosneft CEO said Thursday.
"We signed an agreement to set up two joint ventures on a parity basis. One of them will be involved in oil refining and retail sales of oil products in China, and the other will produce oil in Russia," Sergei Bogdanchikov said.
"We should set up these ventures by the end of the year, and outline the tasks and goals we want to achieve," he said.
Bogdanchikov added that state-owned companies CNPC and Sinopec had the largest networks of gasoline stations in China.
"BP, Shell and Exxon do not have so many gasoline stations in China," he said adding that these oil majors had entered the Chinese market through joint ventures.
Bogdanchikov said foreign companies had entered the Chinese retail market when the country joined the WTO. He said the Chinese government was currently regulating gasoline prices but expressed hope that price reform would be completed when the Rosneft-CNPC joint ventures were formed.
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