China agreed in April 2009 to provide $10 billion to Transneft and another $15 billion to state-run oil major Rosneft in exchange for supplies via pipeline shipment of 300 million tonnes of Russian oil over 20 years.
The planned pipeline that will be used to supply Russian oil ends at the Daqing oilfield. China currently gets most of its Russian oil supplies via rail.
Oil production at Daqing has been on a decline after decades of extraction.
CNPC hopes for steady output from Daqing while making it an important oil stockpiling base.
