Russia’s Rosneft and US oil major ExxonMobil today signed a strategic deal to jointly develop oil in the Russian Arctic.
The agreement includes about £1.95billion to be spent funding exploration in the Kara and Black Seas, described as “among the most promising and least explored offshore areas globally”, said the two firms.
It also provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobil’s exploration opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas.
The announcement, made by ExxonMobil following a ceremony in Sochi, Russia, comes just months after BP’s botched £10billion deal with the Russian-government owned oil firm Rosneft.
“Today’s agreement with Rosneft builds on our 15-year successful relationship in the Sakhalin-1 project,” said a statement from Exxon
“Our technology, innovation and project execution capabilities will complement Rosneft’s strengths and experience, especially in the area of understanding the future of Russian shelf development.”
As part of the agreement, the two companies will share technology and expertise.
The companies have also agreed to conduct a joint study of developing tight oil resources in Western Siberia.
An Arctic Research and Design Center for Offshore Developments is to be created in St Petersburg and staffed by Rosneft and ExxonMobil employees.
The agreement was signed by Rosneft President Eduard Khudainatov and ExxonMobil development company president Neil Duffin in the presence of Russian Prime Minister Vladimir Putin.