China, Russia agree to terms for oil pipeline deal

Russian Deputy Prime Minister Igor Sechin said China will provide "considerable" loans in exchange for increased oil supplies as the two countries reached a deal on a new pipeline, the Wall Street Journal reported. Some reports have said the value of these loans could amount to as much as US$25 billion, although Sechin said it would depend on future oil-supply contracts between the companies involved. According to the terms of the pipeline deal, China National Petroleum Corp will build a 965km stretch inside China that runs up to the Russian border and OAO Transneft will construct a 64km stretch on the other side. The oil will be supplied by OAO Rosneft. The pipeline is expected to be completed no earlier than the end of 2009 and will carry around 300,000 barrels of oil each day.