Sakhalin Energy
In December 2003, CNPC and Sakhalin Energy signed a frame agreement on exploration and development in Russia's Sakhalin oilfield ExxonMobil also looked towards the Chinese market, making preliminary agreements on supplying Sakhalin-I gas to China as early as 2002. On November 2, 2004, CNPC began negotiations with ExxonMobil on possible long-term gas deliveries from Sakhalin-1. Negotiations were concluded in October 2006, when Exxon and CNPC officially announced an agreement. Under the deal, Sakhalin-1 could sell up to 10 billion cubic meters of gas to China over 20 years by pipeline. The plan met strong opposition from Gazprom, which has a rival pipeline project and controls all Russian gas exports apart from sales through PSAs such as Sakhalin-1. In August 2006, Sakhalin-I's De-Kastri oil terminal began exporting processed petroleum to markets including China, Japan, and South Korea.