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Japanese, Chinese bid for Russian oil

With the visit of Russian Prime Minister Mikhail Kasyanov to Japan pencilled in for December, the Japanese government is hoping that it will know by then whether or not it will be is Japan or China that Russia chooses to be the primary buyer of its Siberian oil.

Japan's Assistant Deputy Chief Cabinet Secretary, Shotaro Yachi, is currently in Moscow for talks on long-term ties between the two countries and has hopes to raise the pipeline issue with Russian Deputy Foreign Minister Alexander Losyukov and other high-ranking officials.

Both China and Russia want overland pipelines - China's to terminate in China and Japan's at the closest Russian port to Japan. The Japanese proposal calls for a 3,700 km pipeline from Angarsk to Nakhodka. China's proposal is for a pipeline linking Angarsk and Daqing, a city halfway between Angarsk and Nakhodka.

Earlier reports had stated that the Russian government was favouring the Chinese bid but only recently the Russian media has said that Russia would only make a decision next August.

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A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

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