Rosneft strengthens Black Sea ties with ExxonMobil

Offshore staff

MOSCOW -- Rosneft and ExxonMobil have reached agreement on joint development of oil and gas in the Black Sea.

The agreement envisages formation of a joint operating company performing exploration and production in the Tuapse Trough, an 11,200-sq km (4,324-sq mi) deepwater area off the Black Sea coast of Russia’s Krasnodar region.

Eduard Khudainatov, Rosneft president, and ExxonMobil Development Co. President Neil Duffin signed the accord in Davos, Switzerland. It gives both companies opportunities to expand their Black Sea cooperation in the form of additional exploration and production; deepwater technology R&D; crude oil sales to Rosneft’s Tuapse refinery and other Black Sea markets; and development of regional transportation infrastructure.

Igor Sechin, deputy prime minister of the Russian Federation, who attended the signing ceremony, said: "ExxonMobil technologies will effectively complement Rosneft's experience and resources. Development of this area will become the springboard for full-scale Black Sea basin development, and this challenge will require coordinated efforts of many nations and companies in the region."

Rex Tillerson, chairman and CEO of ExxonMobil, said: "ExxonMobil will bring its technology, project execution capabilities, and innovation to complement Rosneft’s strengths and experience in the region. We will build on the successful relationship we have with Rosneft through the Sakhalin 1 project to help meet energy needs in Russia and the wider Black Sea area.”

Khudainatov added: “Commencement of implementation of the second major contract with a leading international partner this year demonstrates Rosneft's capabilities and its management's focus on creating a global energy company capable of undertaking the most complex offshore projects.”

01/27/2011