Moscow, Russia — February 13, 2013, Rosneft and ExxonMobil expanded the scope of their cooperation in the framework of the strategic cooperation agreement of 2011, further including approximately 150 million acres (600,000 square kilometers) of exploration areas on Russia’s Arctic shelf, the potential participation of Rosneft (or its affiliate) in the Point Thomson project in Alaska and the joint evaluation of the feasibility of an LNG project in Russia’s Far East.
The agreements providing for exploration work on the seven new blocks in the Chukchi Sea, the Laptev Sea and Kara Sea were signed by the President of Rosneft, Igor Sechin, and the President of ExxonMobil Exploration, Stephen Greenlee, in the presence of Russian President Vladimir Putin.
The license blocks — North Wrangel-1, North Wrangel-2 and South Chukchi in the Chukchi Sea; Ust-Oleneksky, Ust-Lensky and Anisinsko-Novosibirsk in the Laptev Sea; and North-Kara block in the Kara Sea — belong to the most promising and least explored offshore blocks in the world.
The individual basic terms of the agreement were signed providing Rosneft (or its affiliate) with the right to acquire a 25% share in the project for the development of the gas condensate field in the Point Thomson block of the oil and gas basin in the Alaska North Slope. The Point Thomson field is estimated to comprise about 25% of the proven gas reserves in the Alaska North Slope.
Rosneft and ExxonMobil also signed a memorandum of understanding to jointly assess the economic feasibility of implementing an LNG project in the Russian Far East, including the possible construction of an LNG plant. The companies will establish a joint working group that is to begin working on a study of the feasibility of the LNG project based on available natural gas resources in the coming weeks.
Commenting on the agreements, Igor Sechin said, “With the signing of today's agreements, the unprecedented scale of the partnership between Rosneft and ExxonMobil advances to an entirely new level. The area of the blocks in the Russian part of the Arctic that are planned to be explored and are expected to be developed in the future have increased nearly six times. This means that the huge resource potential of the Russian Arctic shelf fields will be developed as efficiently as possible using advanced technologies and the expertise of our strategic partner, ExxonMobil, under the condition that advanced environmental systems will be used. Participation in the Point Thomson project will make it possible to get the latest technologies for the development of gas condensate fields in harsh climatic conditions.”
Mr. Greenlee said that this agreement strengthens the cooperation established between the two companies. “This expansion is an example of the close and large-scale cooperation established between Rosneft and ExxonMobil,” said Mr. Greenlee. “We look forward to working together on these new projects.”
Using advanced global experience, the companies will develop the latest environmental systems and safety systems for the Arctic projects. This work is supported by the recently signed declaration on the careful development of the Russian Arctic shelf. In addition, Rosneft and ExxonMobil will be working together in the framework of the Arctic Research Center, which will provide a full range of scientific and technical services to the joint projects for the development of the Arctic shelf.
Rosneft and ExxonMobil continue to implement an engineering and management staff exchange program that contributes to the strengthening of relations between the two companies.
List of additional license blocks included in the Agreement on Strategic Cooperation between Rosneft and ExxonMobil.
Statements relating to future events or conditions in this press release are forward-looking. In the future, actual results, including project plans, costs and revenues and volumes of production carried out by the parties as a result of this agreement, may significantly differ from the estimated values depending on the actions of public authorities or regulatory bodies, including possible changes in legislation; results of exploration programs; changes in oil and gas prices and other market or economic factors that are essential for the oil and gas industry; development of new technologies; other engineering and production factors; actions of competitors and other factors set forth in the Factors Affecting Future Results section on the Investor’s page of the ExxonMobil website. More information on Rosneft can be found on the website www.rosneft.com.
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