BEIJING, Nov. 10 (UPI) -- Russia's oil monopoly Rosneft said it can increase China's oil supply by 60 percent if China makes a competitive offer.
Sergei Bogdanchikov, Rosneft's president, told reporters Friday in Beijing "in theory, we can raise supplies by 6.5-7 million metric tons and provide about 20 million," the Russian news and information agency RIA Novosti reports.
"Chinese companies will be able to bid and obtain another two million tons if they offer a good price," Bogdanchikov said. "We are ready to resume supplies of three million tons a year but have yet to agree on the price."
While China is the world's fastest-growing economy, thus its demand for energy is increasing, Russia can look west for a steady appetite for oil and gas as well.
"Our partners must understand that Russia has a surplus rather than deficit of pipeline capacity, and we can also supply oil to Europe," Bogdanchikov said. "So here is a market situation for you -- who pays more."
He outlined three ways to increase the oil export. One would be to increase oil flow in the Kazakhstan to China pipeline by 1.5 million metric tons, a move waiting for Russia's Industry and Energy Ministry to OK.
A second is moving oil by rail through Mongolia, which has not been finalized.
The third would be to increase to full capacity the Sakhalin-I project, which has reserves of 258 metric tons of oil.
