Rosneft and ExxonMobil have entered into an agreement regarding joint development of oil and gas resources in the Black Sea, which includes an initial focus on oil exploration and production in the Tuapse Trough in the Russian Black Sea basin.
Region to be developed
The agreement signed contemplates a joint operating company to conduct exploration and production in the Tuapse Trough, an 11,200-square-kilometers deepwater offshore area along the Black Sea coast of the Krasnodar region. The exploration stage is estimated to cost $1 billion, with ExxonMobil to make initial investments. . Drilling in the block is scheduled for year 2011-2013. Rosneft will own a 66.7% stake in the joint operating company, with ExxonMobil receiving the remaining 33.3% stake. The financial details of the transaction are not disclosed.
Larger plan for the joint venture
The agreement enables Rosneft and ExxonMobil to consider additional opportunities to expand Black Sea energy sector cooperation in areas such as additional exploration and production, crude oil sales to Rosneft’s Tuapsinsky refinery and other Black Sea markets, development of regional transportation infrastructure, and deepwater offshore technology research and development.