CHINA is in talks with Russia's Rosneft, Gazprom and Novatek about the joint development of oil and gas fields, said the state-owned China National Petroleum Corporation (CNPC), reports Reuters.

Russia is counting on a planned new pipeline to China as it seeks to make up for lost gas sales in Europe, but industry insiders see major political risks around a project that is overly dependent on one buyer and question whether it will justify the costs.

"We are now discussing with Rosneft, Gazprom and Novatek questions on the joint development of oil and gas fields, widening the capacity of pipeline projects and trade of hydrocarbons," said CNPC vice president Xie Jun at the St Petersburg International Gas Forum.

CNPC and Gazprom are working on speeding up Russian gas supplies to China via the Far Eastern route, he said. Gazprom later said it had signed an agreement with the CNPC and PipeChina on design and construction of a pipeline section in the Far East.