ExxonMobil, Rosneft agree to $3.2bn Arctic oil deal

Rosneft and ExxonMobil said they have agreed to undertake joint exploration and development of hydrocarbon resources in Russia, the US and other countries throughout the world, while also commencing technology and expertise-sharing activities.

The agreement, signed by Rosneft president Eduard Khudainatov and ExxonMobil Development Co. president Neil Duffin in the presence of Russian Prime Minister Vladimir Putin, includes approximately $3.2 billion to be spent funding exploration of East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea, which are among the most promising and least explored offshore areas globally, with high potential for liquids and gas.

In the course of these projects, the companies said they will use global best practices to develop state-of-the-art safety and environmental protection systems.

The agreement 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 companies have also agreed to conduct a joint study of developing tight oil resources in Western Siberia.

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.

“We have a clear vision for Rosneft’s strategic direction – building world-class expertise in offshore business and enhancing oil recovery,” said Rosneft president Eduard Khudainatov.

“This venture comes as a result of many years of cooperation with ExxonMobil and brings Rosneft into large scale world-class projects,” he added.

Rex Tillerson, CEO of ExxonMobil, said his company will benefit Russian energy development by working closely with Rosneft.

“This large-scale partnership represents a significant strategic step by both companies,” said Tillerson.