Rosneft, Eni Sign Deal On Russia Offshore Exploration
MOSCOW - Russia's largest oil producer state-controlled OAO Rosneft and Italy's Eni SpA Wednesday signed a cooperation deal to jointly develop Russian offshore energy deposits in the Barents Sea and the Black Sea.
The deal also stipulates that Rosneft will get access to Eni's international projects in North Africa, and later in other parts of the world.
The agreement, signed by Rosneft President Eduard Khudainatov and Eni Chief Executive Paolo Scaroni, envisages establishing a joint venture to explore the Fedynsky and Central Barents fields in the Barents Sea and the Western Chernomorsky field in the Black Sea. Eni will hold 33.33% stake in the project to develop the fields, which combined have total recoverable reserves of 36 billion barrels of oil equivalent.
Eni is expected to invest $2 billion in exploration of the fields, whose development would cost the companies more than $100 billion, Rosneft said.
"We plan to work with Russia for many years. This was the last brick in the road to becoming Russia's top partner for energy," Scaroni said.
"The agreement signed today proves the capability of Rosneft to work with the biggest world class companies, with a rich experience of working on the shelf, advanced technologies and readiness to invest in high technology, long term projects in Russia," said Khudainatov. "I am confident that our partnership will lead to growth of our resource base and the capitalization of both companies."
Russia's President-Elect Vladimir Putin, who was present at the signing, said the government "will do everything possible to support such projects."
By teaming with Rosneft, Eni follows Exxon Mobil Corp., which April 16 finalized a deal with the Russian oil giant. Under that deal, Rosneft will get a 30% stake in projects in the U.S. Gulf of Mexico, in West Texas and in Canada, and Exxon will get access to Russia's offshore deposits both in the Arctic and the Black Sea.
Copyright (c) 2013 Dow Jones & Company, Inc.
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