June 2012 Vol. 239 No. 6

Projects

Rosneft, ExxonMobil Move Toward Strategic Cooperation Agreement

Rosneft and ExxonMobil have signed agreements to implement a long-term Strategic Cooperation Agreement to jointly explore for and develop oil and natural gas in Russia and to share technology and expertise.

The agreements form joint ventures to manage an exploration program in the Kara Sea and Black Sea. They set the terms for investments to be made by the partners in Russian offshore projects. The initial cost of preliminary exploration is estimated at US $3.2 billion.

Neftegaz Holding America Limited, an independent indirect subsidiary of Rosneft registered in Delaware, concluded separate agreements on the acquisition of a 30% equity in ExxonMobil’s share in the La Escalera Ranch project in the Delaware Basin in West Texas.

Neftegaz Holding America Limited will also be given the right to acquire a 30% interest in 20 blocks held by ExxonMobil in the U.S. Gulf of Mexico. The ExxonMobil blocks are located in prospective areas of the western part of the Gulf.

RN Cardium Oil Inc., an independent Rosneft subsidiary, acquired 30% of ExxonMobil’s stake in the Harmattan acreage in the Cardium formation of the Western Canada Basin in Alberta. The execution of that project may help develop technologies for unconventional reservoirs in Russia.

As part of the Strategic Cooperation Agreement, exploration began in the Tuapse license Block in the Black Sea in Russia in September. Drilling of the first well is planned in 2014-15.

In the Kara Sea, plans are under way to undertake seismic and environmental programs of East Prinovozemelsky blocks in anticipation of a potential exploration well in 2014.

Rosneft and ExxonMobil have also signed an agreement to jointly develop tight oil production technologies in Western Siberia. This will enable the companies to later discuss undertaking joint projects to explore and develop prospective areas with unconventional oil potential in Russia.

A program of technical and management staff exchanges has been agreed to by the companies and their affiliates including positions in geology, geoscience, field development, well drilling, finance, logistics, safety, health and the environment.