Rosneft and Eni Sign Completion Deed on Three Offshore Projects in Russia
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- Completed formation of organizational structures for cooperation in offshore projects development in the Barents Sea and in the Black Sea
- Signed definitive agreements, fulfilled terms and conditions required for deals completion
Rosneft and Eni S.p.A., acting through their subsidiaries Rosneft JV Projects S.A. and Eni Energy Russia BV, signed Completion Deed for the Russian offshore projects (regarding Fedynsky, Central Barents blocks in the Barents Sea and Western Chernomorsky block in the Black Sea).
The agreement was signed today at the Saint Petersburg International Economic Forum by Rosneft President and Chairman of the Management Board Igor Sechin and Eni CEO Paolo Scaroni in the presence of the Russian President Vladimir Putin.
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The companies announced the formation of organizational structures for cooperation, signed all definitive agreements and fulfilled all conditions required to develop the offshore projects in the Barents Sea and in the Black Sea under the Strategic Cooperation Agreement entered into by the parties in 2012, which provides for joint development of Russian offshore blocks, technological and staff exchange and Rosneft’s participation in Eni’s international projects.
Rosneft and Eni formed JVs to operate each of the projects with Rosneft holding a 66.67% stake and Eni holding the remaining 33.33% stake.
Eni undertakes to provide full carry financing to perform license obligations for oil and gas exploration. Besides, Eni will compensate Rosneft for 33.33% of expenses on acquisition of licenses and historical expenses on completed exploration for each of the projects.
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NOTES FOR EDITORS: The Fedynsky block covers an area of 38,000 sq. km. in the ice-free southern part of the Barents Sea. Sea depth at the block varies from 200 to 320 meters. 2D seismic revealed 9 promising formations holding total recoverable hydrocarbon resources of 18.7 billion boe. To comply with license conditions, 6,500 kilometers of 2D seismic must be carried out at the Fedynsky block before 2017 and 1,000 square kilometers of 3D seismic by 2018. One prospecting and appraisal well should be drilled before 2020, and, if successful, one more exploration well is to be drilled by 2025. The Central Barents block adjoins Fedynsky to the north and covers an area of 16,000 sq. km. Sea depth here varies from 160 to 300 meters. Earlier seismic work at the block identified 3 promising formations holding total recoverable hydrocarbon resources of more than 7 billion boe. 3,200 kilometers of 2D seismic are to be performed by 2016 and 1,000 kilometers of 3D seismic by 2018. First appraisal well is to be drilled by 2021, and if successful, second exploration well is to be drilled by 2026. The Western Chernomorsky block in the Black Sea is the third area to be jointly explored. The block covers an area of 9,000 square kilometers at a sea depth ranging from 600 to 2,250 meters. Rosneft has carried out seismic works to study the area in its entirety and identified 6 promising formations holding total recoverable resources of approximately 10 billion boe. Two exploration wells are to be drilled in 2015-2016 in line with license obligations. Total recoverable resources of these blocks are expected to hold 36 billion boe. The high potential of blocks in the Barents Sea comes from their close proximity to Norwegian offshore area where several large fields were discovered over the last years. The high probability to discover hydrocarbons at the Western Chernomorsky block has been confirmed by seismic data and a recent discovery at the Romanian offshore area in the Black Sea. |
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June 21, 2013
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