Rosneft and state-controlled Sinopec (China Petroleum & Chemical Corporation), which is Asia's largest oil refiner, signed a framework agreement on strategic cooperation in November 2006. They have already held the first session of the joint coordination committee and discussed cooperation to survey and develop oil and natural gas fields, oil refining and Sinopec's proposal to set up a joint venture in northern China.
The companies are already developing a number of joint projects, including Russian crude producer Udmurtneft [RTS: UDMN], based in European Russia to the west of the Urals.
In November 2006, Rosneft signed a deal with Sinopec to acquire a 51% stake in Udmurtneft. Sinopec won a tender to buy a 96.7% stake in Udmurtneft from Russian-British TNK-BP [RTS: TNBP] for a reported $3.5 billion in June 2006, with a prior condition that it was to sell 51% of its stake to Rosneft.
