ExxonMobil and Rosneft to jointly develop oil and gas in Black Sea

Russian state oil company, Rosneft and ExxonMobil, the world's largest oil company, today agreed to jointly develop over a billion tonnes of oil and gas resources in the Black Sea, using $1 billion from the US-based oil giant funds.

Under the agreement signed in Davos, Switzerland, both oil majors will initially focus on oil exploration and production in the Tuapse Trough in the Russian Black Sea basin- an 11,200-square-kilometers deepwater offshore area along the Black Sea coast of the Krasnodar region.

Exxon will invest $1 billion with both companies having an equal stake at the exploration stage, and the joint venture would be split up with Moscow-based Rosneft holding 66 per cent and Texas-based ExxonMobil holding 33 per cent at the development stage.

The agreement enables Rosneft and ExxonMobil to expand their Black Sea energy sector cooperation in areas such as additional exploration and production, crude oil sales to Rosneft's Tuapse refinery and other Black Sea markets, development of regional transportation infrastructure, and deepwater offshore technology research and development.

"Cooperation with ExxonMobil once again underscores our commitment to the principles of transparency and vision of the Russian energy industry as a part of an integrated global marketplace," - said Igor Sechin, deputy Prime Minister of the Russian Federation.

Both companies plan to apply their experience and expertise to implement this project through application of world leading technologies and the highest standards of environmental safety.

Rex Tillerson, chairman and chief executive officer of ExxonMobil, said his company welcomed the opportunity to expand its activities with Rosneft for the benefit of Russian energy development.

"ExxonMobil will bring its technology, project execution capabilities and innovation to complement Rosneft's strengths and experience in the region. We will build on the successful relationship we have with Rosneft through the Sakhalin 1 project to help meet energy needs in Russia and the wider Black Sea area,'' said Tillerson.