BP, Rosneft ink production, exploration agreements
ST. PETERSBURG, Russia -- Rosneft and BP have signed several agreements strengthening the long term strategic relationship between the two companies, at the St. Petersburg International Economic Forum.
Rosneft and BP signed final binding agreements for Rosneft’s sale to BP of a 20% share of Taas-Yuryakh Neftegazodobycha (Taas), creating a new joint venture in East Siberia. The document was signed by Rosneft Management Board Chairman Igor Sechin and President of BP Russia David Campbell.
The venture will further develop Srednebotuobinskoye oil and gas condensate field, which is one of the largest fields in eastern Siberia, currently producing about 20,000 bpd. The Taas venture will also undertake the development of suitable infrastructure for further exploration and development of the region’s reserves. Related to this, Rosneft and BP will also jointly undertake the exploration of an associated Area of Mutual Interest (AMI) in the region, covering approximately 115,000 km2.
“Eastern Siberia is a priority area for Rosneft. Taas-Yuryakh Neftegazodobycha is carrying out a set of actions with the aim to further expand local infrastructure and boost production capacities. I’m glad that our cooperation with BP is developing in such a promising area,” Sechin said.
“I am pleased we have been able to conclude this transaction. It further deepens our relationship with Rosneft and underlines BP’s position and strategy as a successful long-term investor in Russia. BP will continue to seek attractive investment opportunities to develop Russia’s substantial resources, whilst continuing to comply with international sanctions,” Campbell said.
Rosneft and BP have also agreed jointly to explore two additional AMIs in the West Siberian and Yenisey-Khatanga basins covering a combined area of about 260,000 km2. This agreement commits BP and Rosneft jointly to conduct studies and, if successful, establish new joint ventures to obtain licenses and perform exploration activities. Any joint ventures will be owned 51% by Rosneft and 49% by BP. As part of this agreement, Rosneft and BP will also form a joint venture to carry out further appraisal work on the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI. Exploration activities in the two AMIs will include screening studies, acquisition of seismic data, and drilling of exploration wells as new licenses are added.
Within the framework of the Forum, Sechin and Campbell also signed a heads of terms to pursue a reorganization of the German Ruhr Oel GmbH (ROG) refining joint venture. The document envisages restructuring the joint venture by dividing between the parties shares in four refineries and associated infrastructure.
