Russian Oil Major Rosneft and Energy Giant ExxonMobil to Cooperate

According to Russian oil major Rosneft head Eduard Khudainatov, his company and U.S. energy giant ExxonMobil will develop a detailed plan of joint projects by the end of the year.

Khudainatov told reporters, "A working group of Rosneft and ExxonMobil is drawing up a detailed plan of joint projects and will complete the specifics by the end of the year," Russkoe Informatsionoe Agentsvo Novosti reported.

Rosneft and ExxonMobil recently signed a $3.2 billion agreement to explore jointly the Kara Sea’s offshore East Prinovozemelsky Blocks 1, 2 and 3 in the Russian Arctic and the Tuapse License Block in Russia’s Exclusive Economic Zone (EEZ) in the Black Sea, with Rosneft retaining a 66.7 percent share in both joint ventures.

The proposed cooperation benefits both companies. ExxonMobil, which is already involved with Rosneft on its Far Eastern Sakhalin-1 offshore project, will gain access to substantial Russian reserves while Rosneft, searching for a partner to provide it with the advanced offshore shelf drilling technology that it lacks, will be now able to operate in ExxonMobil's United States concession, including the Gulf of Mexico and Texas, as well as in other countries where ExxonMobil currently operates.

By. Charles Kennedy, Deputy Editor OilPrice.com