Rosneft and ExxonMobil signed agreements to implement a long-term strategic cooperation agreement to jointly explore and develop oil and natural gas in Russia.
The agreements form joint ventures (JVs) 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 $3.2 billion.
Neftegaz Holding America Ltd., an independent indirect subsidiary of Rosneft registered in Delaware, concluded separate agreements on the acquisition of a 30% equity in ExxonMobil’s share in the La Escalera Ranch project in the Delaware Basin in West Texas. Neftegaz will also be given the right to acquire a 30% interest in 20 blocks held by ExxonMobil in the western portion of the Gulf of Mexico.
In addition, RN Cardium Oil Inc., an independent Rosneft subsidiary, acquired 30% of ExxonMobil’s stake in the Harmattan acreage in the Cardium formation of the Western Canada Basin in Alberta, Canada.
The agreements were signed by Eduard Khudainatov, president of Rosneft; Rex W. Tillerson, chairman and chief executive officer of ExxonMobil Corp.; Stephen M. Greenlee, president of ExxonMobil Exploration Co.; and Neil W. Duffin, president of ExxonMobil Development Co.; in the presence of Russian prime minister Vladimir Putin and deputy prime minister Igor Sechin.
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