Rosneft to supply China Aviation Oil

China Aviation Oil Holding Company (CAOHC), the major state-controlled aviation oil supplier in China, has formed a strategic alliance with Rosneft, Russia’s state-owned oil company, to cooperate in the aviation oil sector. Rosneft will be the exclusive aviation oil supplier to China, with most oil supplied from its refinery in the Far East. Its sole refinery that produces aviation oil in the Far East region has an annual capacity of 25,000 tons presently, but Rosneft plans to add significantly to its current capacity. CAOHC, which ranks the world’s seventh largest aviation oil supplier, sold 11.4 million tons of aviation oil in 2006 with sales revenues of RMB53.6 billion (US$6.9 billion). Currently one-third of the aviation oil is imported from Singapore through its subsidiary, China Aviation Oil (Singapore), and two-thirds are supplied by the nation’s top two oil producers, China National Petroleum Corporation and China Petrochemical Corporation. (April 6, 2007)