Lukoil could venture into retail in China

Lukoil, Russia’s largest private oil company, is in talks with China’s state oil company China National Petroleum Corp. (CNPC) on a joint venture to set up a network of retail gasoline stations covering three provinces in northeast China (Heilongjiang, Liaoning and Jilin provinces). In exchange for access to China’s lucrative retail market for refined petroleum products, CNPC is seeking an agreement from Lukoil for direct access to Russian oil, an accord similar to one CNPC has already reached with Russia’s state-owned Rosneft. (August 31, 2006)