Rosneft and Exxon Mobil Corp. finalized a landmark alliance on Monday that will secure vital know-how and upstream access to North America for the Russian state oil firm and explore for oil in Russia’s Arctic offshore.
After nearly a year of talks, Exxon CEO Rex Tillerson signed the strategic co-operation agreement with his counterpart from Rosneft, Eduard Khudainatov, at Russian Prime Minister Vladimir Putin’s Novo-Ogaryovo residence outside Moscow.
Under the deal, Rosneft will gain 30 per cent stakes in three Exxon projects in North America, the companies said in a joint statement.
The first project is developing so-called ‘tight’ oil reserves in West Texas, the second covers 20 deepwater blocks in the U.S. Gulf of Mexico and the third is exploiting shale oil in Canada’s province of Alberta.
Exxon and Rosneft will also conduct a feasibility study to examine the viability of developing an estimated 1.7 billion tonnes of tight oil at Rosneft’s Prirazlomnoye, Mamontovskoye and Priobskoye fields in Western Siberia.
Under an initial deal struck last August, Exxon and Rosneft will spend $3.2 billion to explore for oil in Russia’s Arctic offshore and in the Black Sea. Initial 3-D seismic survey work will begin offshore in 2012, the companies said.