RIA Novosti reported that a Russian to Chinese investment Energy Company a subsidiary of the Hong Kong registered RusEnergy Investment Group has bought 51% of Russia Suntarneftegaz.

Suntarneftegaz holds licenses for the Yuzhno-Berezovsky and Cheredeisky fields in Eastern Siberia with aggregated natural gas reserves of 60 billion cubic meters.

The Zhongguo Caijing newspaper did not name the figures involved in the deal. Suntarneftegaz was unavailable for comment. The newspaper said this was the first joint project between the two countries in oil and following their signing of a deal on cooperation in the natural gas sphere during Chinese President Mr Hu Jintao visit to Russia in June. The deal allows for the first time international companies to produce gas in Russia.

The newspaper said "The deal creates a new model in Russian-Chinese energy cooperation, adding that the RusEnergy Investment Group intended to invest USD 300 million in the deposits within the next two years. The gas from the deposits will be exported to China, Japan, South Korea and Singapore.

The report on the deal appeared a day after the fifth round of Russian-Chinese energy talks was held in China's capital Beijing. Russia was represented by Deputy Prime Minister Mr Igor Sechin and China by deputy premier Mr Wang Qishan.

(Sourced from RIA Novosti)