ExxonMobil, Rosneft sign $3.2 billion Russian Arctic exploration deal

Russian oil giant Rosneft and Exxon Mobil yesterday signed a $3.2-billion deal to jointly explore and develop oil in the Russian Arctic.

The agreement was signed by Rosneft's president Eduard Khudainatov and ExxonMobil's president Neil Duffin in the presence of Russian Prime Minister Vladimir Putin in the Black Sea resort of Sochi.

The $3.2-billion deal is for exploring East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea, which are among the most promising and least explored offshore areas globally, with high potential for liquids and gas.

The East Prinovozemelskiy License Blocks have a total area of 126,000 sq km in water depths ranging between 50 and 150 meters. Tuapse Block in the Black Sea has the total area of 11,200 sq km and water depths ranging from 1,000 to 2,000 meters.

Moscow-based Rosneft's equity interest in both joint ventures will be 66.7 per cent, while Irving, Texas-based ExxonMobil will hold 33.3 per cent.