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Petroleum industry

Rosneft and ExxonMobil Form Strategic Partnership for Arctic and Black Sea Resource Development

Strategic Insights

— 1 min read

Russian energy company Rosneft and US-based ExxonMobil have signed a historic Strategic Cooperation Agreement, outlining their plans to collaborate in the exploration and development of hydrocarbon resources in Russia, the US, and other countries. The agreement aims to leverage the strengths of both companies in offshore business, enhance oil recovery, and share expertise in the areas of drilling, production, and ice-class drilling platforms.

Key Takeaways:

  • The partnership involves an estimated $3.2 billion exploration program in the Kara Sea and Black Sea, focusing on the East Prinovozemelskiy Blocks 1, 2, and 3, and the Tuapse License Block.
  • Rosneft will gain a 66.7% equity interest in the joint ventures, while ExxonMobil will hold a 33.3% stake.
  • The agreement includes the establishment of an Arctic Research and Design Center for Offshore Developments in St. Petersburg, which will be staffed by employees from both companies.
  • The partnership also provides Rosneft with the opportunity to participate in ExxonMobil's exploration opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas.
  • Rosneft and ExxonMobil will implement a program of staff exchanges to strengthen relationships between the companies and provide valuable career development opportunities for personnel from both companies.
  • The agreement aims to create substantial value for both companies and takes their relationship to a new level, building on their 15-year successful partnership in the Sakhalin-1 project.

Statistics:

  • The East Prinovozemelskiy Blocks 1, 2, and 3 have a total area of 126,000 square kilometers (30 million acres) with water depths ranging from 50 to 150 meters (165 feet to 500 feet).
  • The Tuapse Block in the Black Sea has a total area of 11,200 square kilometers (2.8 million acres) with water depths ranging from 1,000 to 2,000 meters (3,300 feet to 6,500 feet).
  • The total exploration budget for the Kara Sea and Black Sea projects is estimated at $3.2 billion.
  • Rosneft's equity interest in the joint ventures will be 66.7%, while ExxonMobil will hold 33.3%.

Sources:

  • ExxonMobil Corporation Copyright Business Wire 2011
  • Asia Pulse August 31, 2011

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