Rosneft, INPEX join to explore offshore northern Russia
Rosneft and INPEX have agreed to jointly explore offshore blocks Magadan-2 and Magadan-3 in the northern part of the Sea of Okhotsk offshore northern Russia.
Water depths range from 120-180 m (393-590 ft). Rosneft estimates total recoverable resources at 1.577 MM metric tons (1.738 MM tons) of oil equivalent.
The two companies will create a joint venture for the exploration program, with INPEX holding a 33.33% participating interest.
INPEX will fully finance geological exploration work on the blocks in line with approved programs, and will reimburse development expenses incurred by Rosneft, as well as 33.3% of a one-off payment made by Rosneft during the course of the license acquisition.
Additionally, INPEX will pay the company non-recurrent bonuses for each commercial oil and gas discovery.