Rosneft and Statoil sign US$ 100 billion Arctic cooperation agreement
As part of Russia’s drive to maintain its position as the world’s largest supplier of oil in the face of declining production rates from its established fields, the state owned giant Rosneft has signed an exploration and development deal, purportedly worth up to US$ 100 billion, with Norway’s Statoil.
As part of the deal, the partnership will undertake several joint ventures in which Statoil will hold a 33% stake. The joint ventures will cover exploration in four licence areas, one in the Barents Sea, the Perseyevsky and three in the Sea of Okhotsk, the Kashevarovsky, the Lisyansky and Magadan-1.
The licences cover a total area upwards of 100 000 km2 in size; roughly equivalent to 200 offshore blocks on the Norwegian continental shelf.
Statoil’s chief executive, Helge Lund said of the deal, “We aim for early access at scale in new and promising basins, positioning us for high-impact exploration. This agreement is at the core of our strategy, supporting our long term growth ambitions.”
The deal also entitles Rosneft to the right to acquire stakes in Statoil assets in the North Sea and the Barents Sea. The two companies have also agreed to a technology and expertise exchange and development programme. Eduard Khudainatov, Rosneft’s president said, “Partnership between Rosneft and Statoil will contribute significantly to the development of economic relations between Russia and Norway, signifying a new era of unprecedented levels of trust.”
Despite having operated in Russia longer than most other foreign companies, this deal marks Statoil’s first major deal in the country.
A Growing Trend
The agreement between Statoil and Rosneft follows a similar deal between the Russian giant and Eni made earlier this year. BP has also indicated interest in conducting operations in the Russian Arctic, but due to a recent court ruling, the company would only be able to do so through a 50 - 50 joint venture with TNK-BP.
Edited from various sources by David Bizley
Read the article online at: https://www.oilfieldtechnology.com/exploration/09052012/rosneft_and_statoil_sign_arctic_cooperation_agreement/
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