Russian oil major Rosneft and BP have signed final documents on joint work at the Taas-Yuryakh oilfield, one of the largest in Eastern Siberia. Under the agreement, BP will pay an estimated $750 million for a 20 percent stake in the oilfield.
READ MORE: BP and Rosneft to make $700mn deal despite sanctions – FT
BP acquired the stake in the Srednebotuobinskoye, one of the largest oil and gas fields in Eastern Siberia, which belongs to Rosneft subsidiary Taas-Yuryakh Neftegazodobycha (Taas). The deposit currently produces about 20,000 barrels of oil per day.
BP’s share is estimated at $750 million, Rosneft CEO Igor Sechin said at the St. Petersburg Economic Forum Friday, RIA reports.
The companies will also build the infrastructure for further exploration and development of the region’s natural resources.
Rosneft CEO Igor Sechin said the agreement marked a shift “to a fundamentally new level of operations in Western Europe.”
“I am pleased we have been able to conclude this transaction,” President of BP Russia David Campbell said in the press-release. “It further deepens our relationship with Rosneft and underlines BP’s position and strategy as a successful long-term investor in Russia.”
Rosneft and #BP sign production, exploration and refining agreements http://t.co/5MN0AmUHgh
— BP Press (@BP_Press) June 19, 2015
Campbell added that BP will continue seeking “attractive investment opportunities to develop Russia’s substantial resources, whilst continuing to comply with international sanctions.”
The companies have also agreed to explore jointly two additional Areas of Mutual Interest (AMI) in the West Siberian and Yenisey-Khatanga basins, covering a combined area of about 260,000 square kilometers.
The deal between the two oil majors was signed despite Western sanctions and that Rosneft and its CEO are included in the sanctioned list. The introduction of sanctions didn’t scare off BP which has a 25-year history of cooperation with Russia; even though the company saw its profits fall last year.