Rosneft and ExxonMobil Announce Progress in Strategic Cooperation Agreement
Joint ventures being created to explore in Russian Black Sea and Kara
Sea; initial planning and exploration steps taken at the license areas
in those waters;
Rosneft subsidiaries take equity in promising exploration and
development projects in the United States and Canada
Russian government′s new tax approach strengthens incentives for
offshore operations
Rosneft and ExxonMobil today signed agreements to implement a long-term
Strategic Cooperation Agreement concluded in August 2011 to jointly
explore for and develop oil and natural gas in Russia and to share
technology and expertise.
The agreements were signed by Rosneft President Eduard Khudainatov; Rex
W. Tillerson, chairman and chief executive officer of Exxon Mobil
Corporation (NYSE:XOM); Stephen M. Greenlee, president of ExxonMobil
Exploration Company; and Neil W. Duffin, president of ExxonMobil
Development Company, in the presence of Russian Prime Minister Vladimir
Putin and Deputy Prime Minister Igor Sechin.
The agreements signed today form joint ventures to manage an exploration
program in the Kara Sea and Black Sea. They also set the terms for
investments to be made by the partners in Russian offshore projects. The
initial cost of preliminary exploration is estimated at over 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 percent equity in ExxonMobil′s share in the La
Escalera Ranch project in the Delaware Basin in West Texas in the United
States.
Neftegaz Holding America Limited will also be given the right to acquire
a 30 percent interest in 20 blocks held by ExxonMobil in the U.S. Gulf
of Mexico, one of the most oil and gas rich basins in the world. The
ExxonMobil blocks are located in prospective areas of the Western part
of the Gulf.
In addition, RN Cardium Oil Inc., an independent Rosneft subsidiary,
acquired 30 percent of ExxonMobil′s stake in the Harmattan acreage in
the Cardium formation of the Western Canada Basin in Alberta, Canada.
The Cardium formation is an active unconventional oil play in which
ExxonMobil has a significant acreage position. The execution of that
project may become a source for the development of technologies for
unconventional reservoirs in Russia.
Commenting on the agreements, Eduard Khudainatov said: 'Today Rosneft
and ExxonMobil enter offshore projects of unprecedented scale in the
Russian Arctic and Black Sea regions, which are home to the world′s
largest hydrocarbon resources base. In so doing we lay the foundation
for long-term growth of the Russian oil and gas industry. I am certain
that 15 years of Rosneft and ExxonMobil partnership, as well as the use
of the latest environmentally safe technologies and unique experience
will allow Rosneft to become one of the global leaders in the oil and
gas industry.?
Rex Tillerson said the agreements are a critical step forward in
strategic cooperation.
'These agreements are important milestones in this strategic
relationship,? said Tillerson. 'Our focus now will move to technical
planning and execution of safe and environmentally responsible
exploration activities with the goal of developing significant new
energy supplies to meet growing global demand.?
Eduard Khudainatov and Rex Tillerson said they were encouraged to
proceed with these projects by the Russian government′s efforts to
reform taxation of the high-potential oil industry sectors and improve
investment conditions for foreign and Russian oil companies.
As part of implementation of the Strategic Cooperation Agreement,
exploration activity began in the Tuapse license Block in the Black Sea
in Russia in September 2011. The seismic program is now 70 percent
complete. Interpretation of data collected will be carried out following
program completion, which is scheduled for the second quarter of 2012.
Drilling of the first exploration well is planned for 2014-2015.
In the Kara Sea, plans are under way to undertake seismic and
environmental programs of East Prinovozemelsky blocks later this year 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. The knowledge and experience
exchange will not only strengthen relationships between the two
companies and their affiliates but also provide career development
opportunities.
The Arctic Research and Design Center for Offshore Developments will
provide a full range of research and design services to support the
development of offshore fields. The main roles of the center include
supporting all stages of oil and gas field development on the Arctic
shelf and helping ensure projects are environmentally safe, including
through the provision of technical support in environmental monitoring.
The center will also support offshore safety. A special Offshore
Accident and Emergency Warning and Prevention Service will be created to
help prevent and respond immediately to any emergencies or accidents.
Rosneft and ExxonMobil will provide an update on their Strategic
Cooperation Agreement in a presentation to investment analysts on
Wednesday, April 18, 2012 at 8:30 a.m. CT. A webcast of the presentation
will be available in English and Russian at www.exxonmobil.com.
CAUTIONARY NOTE:
Statements of future events and conditions in this release are
forward-looking statements. Actual future results, including project
plans, costs and benefits; resource recoveries; and the impact of
technology could differ materially due to changes in oil or gas prices
or other market conditions affecting the oil and gas industries; the
outcome of exploration and development projects; unforeseen technical
difficulties or technological changes; the outcome of commercial
negotiations; changes in law or government regulation; and other factors
discussed here and under the heading 'Factors Affecting Future Results'
in the Investors′ section of ExxonMobil′s web site at exxonmobil.com and
on the Investors′ pages of ExxonMobil′s (www.exxonmobil.com)
and Rosneft′s (www.rosneft.com)
websites.
ExxonMobil
Media Relations, 972-444-1107
or
Rosneft
Information Division
Tel.: +7 (495) 411 54 20
Fax: +7 (495)
411 54 21
