Rosneft and ExxonMobil Corp. signed a pilot development agreement finalizing a previously announced joint project to assess the possibility of commercial production of tight oil at the Bazhenov and Achimov formations in Western Siberia.
The agreement supports implementation of the companies’ August 2011 long-term strategic cooperation agreement (OGJ Online, Aug. 30, 2011).
The joint venture will run a pilot program with Rosneft holding 51%. Work will be carried out at Rosneft’s 23 license blocks covering more than 10,000 sq km. Drilling is expected to begin in 2013.
Rosneft and its production subsidiaries will provide workers and access to existing infrastructure. ExxonMobil will provide up to $300 million in financing along with technologies and expertise. In addition, ExxonMobil will provide production management services for drilling complex horizontal wells.
The pilot program will include drilling new horizontal and vertical wells using the latest fracturing technologies, deepening existing wells, and redevelopment of idle wells.