Rosneft signs up with ExxonMobil on Black sea energy development

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Published time: January 27, 2011 12:16
Edited time: January 27, 2011 15:31

Russia’s largest oil company, Rosneft, has entered into an agreement with the world’s largest energy company, ExxonMobil, on development of gas and oil deposits in the Black Sea.

Under an agreement signed at the World Economic Forum in Davos by Rosneft president Eduard Khudainatov and ExxonMobil Development Company president Neil Duffin, the two companies will create a joint operating company to explore and develop production in the Tuapse Trough in the Black Sea off the coast of the Krasnodar region.

The agreement could be expanded to encompass additional exploration and production, crude oil sales to Rosneft’s Tuapse refinery and other Black Sea markets, development of regional transportation infrastructure, and deepwater offshore technology research and development.  Russian Deputy Prime Minister, and Rosneft Chairman Igor Sechin, said the agreement will add value to previous Rosneft development activities in the region.

"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."

ExxonMobil CEO, Rex Tillerson, who was present for the signing, said the agreement would add to the company’s relationship with Rosneft.

"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”