RE:China and Chechnya Sign Cooperation Agreement Here's the translation:
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SOCIETY anonymous open type "" and a Chinese company have entered into a cooperation agreement in the field of oil and gas exploration and production on the territory of the republic, reports eadaily.com . The oil field in Chechnya "has been exploited by detached air, almost entire bituminous layers have not been developed," said the CEO of the open-ended SOCIT "" and Chinese experts after study of the Documentation on abandoned wells. According to the general manager, some wells due to difficult disposable accidents simply closed.
The only one for the moment, the active player in the segment of oil production in Chechnya - NK "Rosneft". According to the newspaper, the head of Ramzan Kadyrov's republic accuses the management of the company in that it does not want to invest in the development of new oil fields in Chechnya. This has led to the fall of hydrocarbon production in the republic. Perhaps for "Rosneft" Chechnya is not of great interest, as oil production in the republic has been going on for over a century, and stocks are low. However, Chechen oil is valued for its high quality and does require some recycling. Similarly, the authorities of Chechnya sure that the republic's oil still a lot, the main one is to find it.
The Chinese have become the first foreign partners of the industry in Chechnya, therefore, they will create the most favorable conditions, said when signing documents, the government chairman of Chechnya Aboubakar . According to him, the authorities hope that "this agreement will give impetus to the development of the economy of the republic". This will be implemented projects, not only on oil, but its treatment.
The work on the signing of agreements with the Chinese was carried out over two years. In particular, were trained to 18 extraction areas, including those of the licensing sites that refused to NK "Rosneft", recalling their and lack of oil. In addition, "" has auctioned the 10 long-term license, which allowed the company to penetrate the world of market investment.
Now the Chinese will train in collaboration with "" order for oil production, said the chairman of the board of the Chinese company - . Subsequently, the partners plan to develop the republic of tchtchnes oil and chemical industry.
The agreement - is not a reason
As experience shows, the signing of agreements between Russia and China are rarely led to the conclusion of contracts for the realization of investments. According to EADaily, at the end of last year, the Canadian company of Genoil company already planned to attract investment from Chinese banks in Chechen and complex oil but according to the plans of the case has not disappeared. Ingushetia's neighbor has been trying to attract Chinese investment for more than 10 years, but it all ends with negotiations and "courtesy visits".
"Negotiate, you can talk about anything, everything depends on the implementation. I remind you that at the time, in 2007, was signed the cooperation agreement on the Russian Far East of northeast China. It provided more than 200 cooperation projects, but implemented to date more than 10. So the issue is not in the arrangements and in their implementation, "- said:" Free Press, "Andrei Ostrovsky.
The expert explained that foreigners prefer to invest in financial structures, because direct investments in Russia are not insured, that "constitutes an additional risk for foreign investment". This is particularly the case of those who will receive the income from capital and production of Russia products. Therefore, when comparing with Kazakhstan, the Chinese prefer to invest money in projects in Kazakhstan, as there is a guarantee of repayment of the investment. You must develop a guarantee mechanism for all investments, including Chinese. This is determined by bilateral agreements, stressed Ostrovsky.
Oil production in Chechnya
The oil was extracted from Chechnya in 1893. The beginning of the Second World War, the volume of production was 4 million tons per year. The record was installed in the 1970s, when oil production exceeded 21 million tons per year. Then the rates began to fall slowly, and after the armed conflict in Chechnya in the 1990s the production of oil decreased even more. Now, experts estimate that the oil reserves in Chechnya at level 50 to 100 million tons.
In the years 2000, the first president of Chechnya Ahmet Kadyrov demanded, for the oil revenues of the company "Rosneft" remain in the budget of the republic. In 2015 Ramzan Kadyrov began to speak with the Russian president on the transfer of the Republic of the assets of the company "". He said the authorities of the republic to attract investment and build an oil refinery. The decision on this matter the company "Rosneft" will take in 2017.
SOCIT anonymous open type " with a registered capital of 1.967 billion rubles created in 2011 on the basis of the namesake of the FSUE. A wholly owned subsidiary of its owner is Rosimushestvo. The company belongs to a number of oil and gas installations in Chechnya, which leases "" - the joint venture "Rosneft" (51%) and the government of the republic (49%), which leads to Chechnya, the production of hydrocarbons.