Arctic Deal between Rosneft and ExxonMobil

Sochi, Russia - Rosneft and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies plan to undertake joint exploration and development of hydrocarbon resources in Russia, the United States and other countries throughout the world, and commence technology and expertise sharing activities.

The agreement, signed by Rosneft President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin in the presence of Russian Prime Minister Vladimir Putin, includes approximately US $3.2 billion to be spent funding exploration of parts in the Kara Sea and the Black Sea, which are among the most promising and least explored offshore areas globally, with high potential for liquids and gas.

The companies will create an Arctic Research and Design Center for Offshore Developments in St. Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production and ice-class drilling platforms, as well as other Rosneft projects.

The agreement also provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobil

Source: IWR Online, 31 Aug 2011