BP and Rosneft join forces for Russian oil exploration

Rosneft will have a 51 percent stake in Yermak Neftegaz, with BP controlling the remaining 49 percent.BP and Rosneft signed an agreement today to create a joint Russian oil and gas exploration venture in which BP will invest up to US $300 million.

The document was signed in St Petersburg by Rosneft CEO Igor Sechin and the President of BP Russia, David Campbell.

The venture, called Yermak Neftegaz LLC, will focus on the exploration of two areas of mutual interest in the Yenisey-Khatanga and West Siberian basins. Combined, the sites cover an area of roughly 260,000 square kilometres.

Rosneft will have a 51 percent stake in Yermak Neftegaz, with BP controlling the remaining 49 percent.

Campbell said in a statement: “This agreement and creation of a new joint venture reinforces BP’s commitment to our strategic investment in Russia and our long term partnership with Rosneft. In the current low oil price environment we continue to look for opportunities for future growth.”

Rosneft is majority-owned by the Russian government, though BP is the oil major’s largest minority shareholder with a near 20 percent stake.

Rosneft’s subsidiaries will drill the first wells at the deposits in Yenisey-Khatanga and West Siberia. The exploration works are due to begin next winter.

source: energydigital.com