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Rosneft and ExxonMobil to join forces in the Artic and Black Sea offshore, enhance co-operation through technology sharing and joint international projects

30 August 2011
  • 3.2 billion exploration program planned for Kara Sea and Black Sea
  • Establishment of a joint Arctic Research and Design Center for Offshore Development (ARC) in St. Petersburg
  • Rosneft participation in ExxonMobil projects in the US and other countries with a focus on building offshore and tight oil expertise
  • Joint study of possibilities to develop Western Siberia tight oil resources
  • The companies form a strategic partnership to undertake agreed joint projects in Russia and internationally.

Sochi, Russia – August 30, 2011. Rosneft and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies plan to undertake joint exploration and development of hydrocarbon resources in Russia, USA and other countries throughout the world, and to commence technology and expertise sharing activities.

The agreement, signed by Rosneft President Eduard Khudaynatov and ExxonMobil Development Company President Neil Duffin in the presence of Russian Prime Minister Vladimir Putin, includes approximately US $3.2 billion to be spent funding exploration and development of East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse Trough License Block in the Black Sea, some of the most promising and least explored offshore areas globally.

In the course of these projects the companies will focus on the environment and creation of the most modern safety systems with consideration to the risks of offshore operations, and global best practices.

Additionally, the Agreement provides Rosneft with an opportunity to gain equity interest in a number of exploration and operating ExxonMobil assets in North America, including offshore fields in the Gulf of Mexico, tight oil fields in Texas (USA), Canada and projects in other countries. The companies have also agreed to conduct a joint study of developing tight oil resources in Western Siberia.

Moreover Rosneft and ExxonMobil will implement a program of personnel exchange for technical and management employees which will help strengthen the relationships between the companies and provide valuable career development opportunities for personnel of both companies.

The partners will create an Arctic Research and Design Center for Offshore Developments (ARC) in St. Petersburg which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and Rosneft technology, and will develop new technology to support the joint Arctic projects, including ice-class drilling and production ships and platforms, as well as other Rosneft projects.

“We have a clear vision of Rosneft’s strategic direction – building world-class expertise in offshore operations and enhancing oil recovery. The partnership between Rosneft with its unique resource base, and the largest and most highly capitalized company in the world reflects our commitment to increasing capitalization of our business through application of best-in-class technology, innovative approach to business management, and enhancement of our human resource potential.” said Rosneft President Eduard Khudaynatov, following the signing ceremony. "This venture comes as a result of many years of cooperation with ExxonMobil and brings Rosneft into large scale world-class projects, turning the Company into a global energy leader."

"Today's agreement with Rosneft builds on our 15-year successful relationship in the Sakhalin-1 project," said ExxonMobil Development Company President Neil Duffin. "Our technology, innovation and project execution capabilities will complement Rosneft’s strengths and experience, especially in the area of understanding the future of Russian shelf development.”

Rex Tillerson, Chairman and CEO of ExxonMobil Corporation, who attended the ceremony, said ExxonMobil will benefit Russian energy development by working closely with Rosneft. “This large-scale partnership represents a significant strategic step by both companies”, added Mr. Tillerson. “This agreement takes our relationship to a new level and will create substantial value for both companies. The agreement will be a basis for constructive dialog with the Government of the Russian Federation on establishment of a fiscal regime for offshore operation consistent with best global practices".

This transaction has been approved by Rosneft’s Board of Directors on August 30, 2011.

FOR REFERENCE:

The East Prinovozemelskiy License Blocks have a total area of 126,000 square kilometers (31 million acres) in water depths ranging between 40 and 350 meters (120 – 1,000 feet) (sea ice 270-300 days a year, high environmental sensitivity). Tuapse Trough License Block in the Black Sea has the total area of 11,200 square kilometers (2.8 million acres) and water depths ranging from 40 to 2,000 meters (120 – 6,000 feet). Rosneft equity interest in both joint ventures will be 66.7 per cent, while ExxonMobil will hold 33.3 per cent.

Rosneft Information Division
Tel.: +7 (495) 411 54 20
ExxonMobil Information Division 972-444-1107
August 30, 2011


CAUTIONARY NOTE: - Statements of future events and conditions in this release are forward-looking statements. The Strategic Cooperation Agreement represents a binding set of all material terms of such cooperation. Closing of the transactions contemplated by the agreement is subject to execution of a number of agreements governing the parties’ operations in respect of joint projects. Actual future results, including potential costs and benefits realized by the parties as a result of the agreement, could differ materially depending on the actions of governmental authorities and regulators, including changes in laws and regulations; the outcome of exploration programs; changes in prices and other market and economic factors affecting the oil and gas industries; future technological developments; other technical and operating factors; actions of competitors; and other factors discussed under the heading “Factors Affecting Future Results” on the Investors pages of ExxonMobil’s (www.exxonmobil.com) and Rosneft’s (www.rosneft.com) websites

Keywords: ROSNEFT - ExxonMobil