Russian oil company LUKOIL will send China Petroleum & Chemical Corp (Sinopec) 3 million tons of crude oil over the next year, Reuters reported. The pricing terms of the contract were not fully disclosed, but LUKOIL said the oil will come from its new Arctic field of South Khylchuyu and be shipped to China by LITASCO, the company’s trading arm. The deal comes as China has made numerous large loans to Russian companies. "China is one of the biggest crude oil and fuel oil importers; that’s why the Chinese market is of major interest to LUKOIL," the company’s vice president Ravil Maganov said in a statement. Maganov added that LUKOIL is open to cooperating with Chinese firms in the upstream segment of the oil market. Earlier in the week a Sinopec executive told Reuters that Sinopec’s request to increase production at its largest foreign oilfield in Udmurtneft was rejected by the majority partner Rosneft.