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Main page → News room → Press releases

Rosneft and ExxonMobil Announce Progress in Strategic Cooperation Agreement

  • Joint ventures being created to explore in Russian Black Sea and Kara Sea; initial planning and exploration steps taken at the license areas in those waters;
  • Rosneft subsidiaries take equity in promising exploration and development projects in the United States and Canada
  • Russian government’s new tax approach strengthens incentives for offshore operations

MOSCOW, Russia -- Rosneft and ExxonMobil today signed agreements to implement a long-term Strategic Cooperation Agreement concluded in August 2011 to jointly explore for and develop oil and natural gas in Russia and to share technology and expertise.

The agreements were signed by Rosneft President Eduard Khudaynatov, Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation, Stephen M. Greenlee, president of ExxonMobil Exploration Company and Neil W. Duffin, president of ExxonMobil Development Company, in the presence of Russian Prime Minister Vladimir Putin and Deputy Prime Minister Igor Sechin.

The agreements signed today form joint ventures to manage an exploration program in the Kara Sea and Black Sea. They also set the terms for investments to be made by the partners in Russian offshore projects. The initial cost of preliminary exploration is estimated at over US $3.2 billion.

Neftegaz Holding America Limited, an independent indirect subsidiary of Rosneft registered in Delaware, concluded separate agreements on the acquisition of a 30 percent equity in ExxonMobil’s share in the La Escalera Ranch project in the Delaware Basin in West Texas in the United States.

Neftegaz Holding America Limited will also be given the right to acquire a 30 percent interest in 20 blocks held by ExxonMobil in the U.S. Gulf of Mexico, one of the most oil and gas rich basins in the world. The ExxonMobil blocks are located in prospective areas of the Western part of the Gulf.

In addition, RN Cardium Oil Inc., an independent Rosneft subsidiary, acquired 30 percent of ExxonMobil’s stake in the Harmattan acreage in the Cardium formation of the Western Canada Basin in Alberta, Canada. The Cardium formation is an active unconventional oil play in which ExxonMobil has a significant acreage position. The execution of that project may become a source for the development of technologies for unconventional reservoirs in Russia.

Commenting on the agreements, Eduard Khudaynatov said: “Today Rosneft and ExxonMobil enter offshore projects of unprecedented scale in the Russian Arctic and Black Sea regions, which are home to the world’s largest hydrocarbon resources base. In so doing we lay the foundation for long-term growth of the Russian oil and gas industry. I am certain that 15 years of Rosneft and ExxonMobil partnership, as well as the use of the latest environmentally safe technologies and unique experience will allow Rosneft to become one of the global leaders in the oil and gas industry.”

Rex Tillerson said the agreements are a critical step forward in strategic cooperation.

“These agreements are important milestones in this strategic relationship,” said Tillerson. “Our focus now will move to technical planning and execution of safe and environmentally responsible exploration activities with the goal of developing significant new energy supplies to meet growing global demand.”

Eduard Khudaynatov and Rex Tillerson said they were encouraged to proceed with these projects by the Russian government’s efforts to reform taxation of the high-potential oil industry sectors and improve investment conditions for foreign and Russian oil companies.

As part of implementation of the Strategic Cooperation Agreement, exploration activity began in the Tuapse license Block in the Black Sea in Russia in September 2011. The seismic program is now 70 percent complete. Interpretation of data collected will be carried out following program completion, which is scheduled for the second quarter of 2012. Drilling of the first exploration well is planned for 2014-2015.

In the Kara Sea, plans are under way to undertake seismic and environmental programs of East Prinovozemelsky blocks later this year in anticipation of a potential exploration well in 2014.

Rosneft and ExxonMobil have also signed an agreement to jointly develop tight oil production technologies in Western Siberia. This will enable the companies to later discuss undertaking joint projects to explore and develop prospective areas with unconventional oil potential in Russia.

A program of technical and management staff exchanges has been agreed to by the companies and their affiliates including positions in geology, geoscience, field development, well drilling, finance, logistics, safety, health and the environment. The knowledge and experience exchange will not only strengthen relationships between the two companies and their affiliates but also provide career development opportunities.

The Arctic Research and Design Center for Offshore Developments will provide a full range of research and design services to support the development of offshore fields. The main roles of the center include supporting all stages of oil and gas field development on the Arctic shelf and helping ensure projects are environmentally safe, including through the provision of technical support in environmental monitoring. The center will also support offshore safety. A special Offshore Accident and Emergency Warning and Prevention Service will be created to help prevent and respond immediately to any emergencies or accidents.

Rosneft and ExxonMobil will provide an update on their Strategic Cooperation Agreement in a presentation to investment analysts on Wednesday, April 18, 2012 at 5:30 p.m. Moscow time (9:30 a.m. New York time, 2:30 p.m. London time). A webcast of the presentation will be available in English and Russian at rosneft.com

Rosneft Information Division
Tel.: +7 (495) 411 54 20
Fax: +7 (495) 411 54 21


ExxonMobil Media Relations
972-444-1109
April 16, 2012

CAUTIONARY NOTE:

Statements of future events and conditions in this release are forward-looking statements. Actual future results, including project plans, costs and benefits; resource recoveries; and the impact of technology could differ materially due to changes in oil or gas prices or other market conditions affecting the oil and gas industries; the outcome of exploration and development projects; unforeseen technical difficulties or technological changes; the outcome of commercial negotiations; changes in law or government regulation; and other factors discussed here and under the heading "Factors Affecting Future Results" in the Investors’ section of ExxonMobil’s web site at exxonmobil.com and on the Investors’ pages of ExxonMobil’s (www.exxonmobil.com) and Rosneft’s (www.rosneft.com) websites.


Rosneft and ExxonMobil to join forces in the Artic and Black Sea offshore, enhance co-operation through technology sharing and joint international projects

30 August 2011

  • 3.2 billion exploration program planned for Kara Sea and Black Sea
  • Establishment of a joint Arctic Research and Design Center for Offshore Development (ARC) in St. Petersburg
  • Rosneft participation in ExxonMobil projects in the US and other countries with a focus on building offshore and tight oil expertise
  • Joint study of possibilities to develop Western Siberia tight oil resources
  • The companies form a strategic partnership to undertake agreed joint projects in Russia and internationally.

Sochi, Russia – August 30, 2011. 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, USA and other countries throughout the world, and to commence technology and expertise sharing activities.

The agreement, signed by Rosneft President Eduard Khudaynatov 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 and development of East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse Trough License Block in the Black Sea, some of the most promising and least explored offshore areas globally.

In the course of these projects the companies will focus on the environment and creation of the most modern safety systems with consideration to the risks of offshore operations, and global best practices.

Additionally, the Agreement provides Rosneft with an opportunity to gain equity interest in a number of exploration and operating ExxonMobil assets in North America, including offshore fields in the Gulf of Mexico, tight oil fields in Texas (USA), Canada and projects in other countries. The companies have also agreed to conduct a joint study of developing tight oil resources in Western Siberia.

Moreover Rosneft and ExxonMobil will implement a program of personnel exchange for technical and management employees which will help strengthen the relationships between the companies and provide valuable career development opportunities for personnel of both companies.

The partners will create an Arctic Research and Design Center for Offshore Developments (ARC) 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 ice-class drilling and production ships and platforms, as well as other Rosneft projects.

“We have a clear vision of Rosneft’s strategic direction – building world-class expertise in offshore operations and enhancing oil recovery. The partnership between Rosneft with its unique resource base, and the largest and most highly capitalized company in the world reflects our commitment to increasing capitalization of our business through application of best-in-class technology, innovative approach to business management, and enhancement of our human resource potential.” said Rosneft President Eduard Khudaynatov, following the signing ceremony. "This venture comes as a result of many years of cooperation with ExxonMobil and brings Rosneft into large scale world-class projects, turning the Company into a global energy leader."

"Today's agreement with Rosneft builds on our 15-year successful relationship in the Sakhalin-1 project," said ExxonMobil Development Company President Neil Duffin. "Our technology, innovation and project execution capabilities will complement Rosneft’s strengths and experience, especially in the area of understanding the future of Russian shelf development.”

Rex Tillerson, Chairman and CEO of ExxonMobil Corporation, who attended the ceremony, said ExxonMobil will benefit Russian energy development by working closely with Rosneft. “This large-scale partnership represents a significant strategic step by both companies”, added Mr. Tillerson. “This agreement takes our relationship to a new level and will create substantial value for both companies. The agreement will be a basis for constructive dialog with the Government of the Russian Federation on establishment of a fiscal regime for offshore operation consistent with best global practices".

This transaction has been approved by Rosneft’s Board of Directors on August 30, 2011.

FOR REFERENCE:

The East Prinovozemelskiy License Blocks have a total area of 126,000 square kilometers (31 million acres) in water depths ranging between 40 and 350 meters (120 – 1,000 feet) (sea ice 270-300 days a year, high environmental sensitivity). Tuapse Trough License Block in the Black Sea has the total area of 11,200 square kilometers (2.8 million acres) and water depths ranging from 40 to 2,000 meters (120 – 6,000 feet). Rosneft equity interest in both joint ventures will be 66.7 per cent, while ExxonMobil will hold 33.3 per cent.

Rosneft Information Division
Tel.: +7 (495) 411 54 20
ExxonMobil Information Division 972-444-1107
August 30, 2011


CAUTIONARY NOTE: - Statements of future events and conditions in this release are forward-looking statements. The Strategic Cooperation Agreement represents a binding set of all material terms of such cooperation. Closing of the transactions contemplated by the agreement is subject to execution of a number of agreements governing the parties’ operations in respect of joint projects. Actual future results, including potential costs and benefits realized by the parties as a result of the agreement, could differ materially depending on the actions of governmental authorities and regulators, including changes in laws and regulations; the outcome of exploration programs; changes in prices and other market and economic factors affecting the oil and gas industries; future technological developments; other technical and operating factors; actions of competitors; and other factors discussed under the heading “Factors Affecting Future Results” on the Investors pages of ExxonMobil’s (www.exxonmobil.com) and Rosneft’s (www.rosneft.com) websites