Russia’s Rosneft (PINK:RNFTF) could be one of the sleeper picks for rising Chinese energy demand.
The company has been making headlines for its recent deals with BP (NYSE:BP) and Exxon Mobil (NYSE:XOM). However, its agreements with China could bear more fruit. And it’s easy to see why — Russia is the world’s largest energy producer, China is the world’s largest energy consumer, and the two countries share a common border.
In exchange for $2 billion in loans, the Russian energy producer agreed to deliver at least 37 million metric tons of oil per year — 743,000 barrels a day — to China National Petroleum. Additionally, the pair will jointly explore three offshore blocks in the Barents Sea and eight blocks in onshore Russia.
All in all, the two BRIC leaders could see more deals in the future that will help Rosneft’s bottom line.