BP has signed a strategic collaboration agreement with Rosneft Oil Company focused on supporting carbon management and sustainability activities.
The deal builds on “years of partnership” between the two companies, formalising key elements of their past work highlighting decarbonisation activities and opportunities.
Russian oil giant Rosneft and BP have agreed to cooperate in identifying and developing new solutions and programmes that will support their shared sustainability goals.
The companies also intend to join efforts in aligning with developing industry methodologies and standards on carbon management.
That includes methane reduction initiatives and energy efficiency applications.
New projects, which envisage the use of renewables, carbon capture and storage and hydrogen, will also be jointly evaluated.
In order to decarbonise downstream businesses, the pair will explore developing advanced fuel and creating natural carbon forest sinks.
Igor Sechin, chief executive at Moscow-headquartered Rosneft, said: “Rosneft and bp are united not only through the longstanding successful partnership in various areas but also in the intention to leverage this experience in future prospective projects outlined in this agreement.
“Joint efforts of our two companies, as the world energy industry leaders, will not only strengthen our corporate aims in sustainable development, but will also provide a significant contribution to overcoming the challenges the industry and the society face in the climate action and the satisfaction of growing global economy demand for energy resources.
“This is necessary for balanced social and economic development and life quality improvement.”
The agreement forms part of BP’s wider strategic ambition to transition away from fossil fuels and, in doing so, dispel accusations of greenwashing.
The oil and gas major released its full year results for 2020 earlier this week, which underlined the devastating impact of the Covid-19 pandemic and oil price slump on its finances.
It slumped to losses of more than £18 billion pounds, partly resulting from its efforts to become a broader energy company, something that analysts said left it caught in a “conundrum”.
Bernard Looney, BP chief executive, said: “We’ve been partners with Rosneft for many years now and we learn a great deal from each other. That’s important, and I believe that this agreement can be an important catalyst for progress.
“We both believe in the power of partnership and look forward to bringing together the best of Rosneft and BP to develop low carbon solutions and drive down emissions.”
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