ExxonMobil-Rosneft partnership advances

By OGJ editors

ExxonMobil Corp. and Rosneft have signed agreements under a broad upstream partnership they formed last year that support exploration off Russia and the acquisition by Rosneft subsidiaries of interests in the Gulf of Mexico and unconventional resources in the US and Canada (OGJ Online, Aug. 30, 2011).

The new agreements:

• Form joint ventures to manage an exploration program in the Kara and Black Seas and set terms of investments by the partners. In a statement, the companies estimated the “initial cost of preliminary exploration” at more than $3.2 billion.

• Provide for the acquisition by Neftegaz Holding America Ltd., an independent indirect subsidiary of Rosneft, of a 30% equity interest in ExxonMobil’s share of a tight oil prospect in the Delaware basin of West Texas called La Escalera Ranch.

• Give Neftegaz Holding America the right to acquire 30% interest in 20 blocks held by ExxonMobil in the western Gulf of Mexico.

• Provide independent Rosneft subsidiary RN Cardium Oil Inc. 30% of ExxonMobil’s share of the Harmattan acreage in the Cretaceous Cardium tight oil play of western Alberta. “The execution of that project may become a source for the development of technologies for unconventional reservoirs in Russia,” the statement said.

ExxonMobil Chairman and Chief Executive Officer Rex Tillerson and Rosneft Pres. Eduard Khudainatov said they were encouraged to proceed by moves of the Russian government to reform taxation of the oil industry.

The companies said they began exploration of the Tuapse license block in the Black Sea off Russia last September. A seismic program there is 70% complete. Drilling of the first exploratory well is planned for 2014-15.

Seismic and environmental programs of the East Prinovozemelsky blocks in the Kara Sea remain under planning. Drilling of an exploration well is possible in 2014.

Related Articles

Kansas-Missouri heavy oil area draws new operator

03/26/2014 Worthington Energy Inc., San Francisco, said it will attempt to recover heavy oil on the Barr Cattle Co. lease near Chetopa in southeastern Kansas.

Myanmar awards exploration blocks

03/26/2014 Myanmar’s energy minister has announced winners for 20 of the 30 offshore blocks that have been available since its auction launch in April 2013.

Financial questions seen for US shale gas, tight-oil plays

03/25/2014 Financial problems of operators in US shale gas and tight oil plays might hold production growth below current expectations, according to the autho...

BOEM: Firms bid $850 million in high bids in central gulf lease sale

03/24/2014 The US Bureau of Ocean Energy Management reported that its central Gulf of Mexico Lease Sale 231 received 380 bids from 50 companies on 326 blocks,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected