Rosneft has agreed the 2nd stage of the deal with ExxonMobil
Rosneft and ExxonMobil have agreed the 2nd part of the deal on the foundation of a strategic alliance. Now the Russian company, which together with ExxonMobil will develop the deposits at the shelf of the Kara and Black seas, will join projects in Texas, the Gulf of Mexico and Canada. The parties don’t release how much it will cost, but according to the sources of Kommersant, it is about not more than $100 mln without the investment into the development.
Yesterday in Novo-Ogarevo in the presence of the Prime Minister, V. Putin, the Presidents of Rosneft and ExxonMobil, E. Khudaynatov and R. Tillerson, signed a package of agreements on the 2nd part of the deal on the foundation of their strategic alliance. In August 2011 Rosneft and ExxonMobil agreed on the joint development of 3 East-Prinovozemelsky sites, now the Russian state company will get in exchange the projects in the USA and Canada. These agreements are meant for decades, the Prime Minister said. R. Tillerson said that the negotiations have moved to a new level. We have become world partners, he said.
In the USA via a specially founded affiliate Neftegaz holding America Ltd, Rosneft will purchase from ExxonMobil 30% in the project with difficult to extract oil at La Escalere in the Delaware oil and gas bearing basin in the western Texas (C1 oil reserves, according to WoodMackenze are assessed at 424 bln cubic meters). The state company will gain the right for the purchase of 30% in the 20 belonging to ExxonMobil sites in the Gulf of Mexico. In Canada the independent affiliate of Rosneft - RN Cardium, Oil – will get 30% of ExxonMobil’s stake in the Kharmattan site of Cardium plate with difficult to extract oil on the territory of the Western-Canadian basin in the Albert province (234 thousand barrels of oil equivalent is produced daily).
Rosneft doesn’t release the amount of the deal. A source close to the state company said it is minimal. It is about a few dozen million dollars, an interlocutor of Kommersant said. In August Rosneft said in a number of projects the company is interested in there might be other shareholders that will have to give the permission for the state company’s joining the consortium. However, in the chosen assets there is only one shareholder – ExxonMobil, so no special agreements were necessary. The details of the projects which Rosneft has joined will be given at the presentation for investors in New York where top-managers of both companies and the Vice Prime Minister, I. Sechin, will participate.
In August the parties agreed on the joint work at 3 East-Prinovozemelsky sites at the shelf of the Kara Sea (total recoverable resources -4.9 bln tons of oil and 8.3 trln cubic meters of gas) and the Tuapse trough at the shelf of the Black Sea (total recoverable resources – 1.2 bln tons of oil equivalent), i.e. on the foundation of 2 operator companies (ExxonMobil - 33.3%, Rosneft- the rest). The geological exploration will cost $3.2 bln. In general the Vice Prime Minister, I. Sechin, estimated the investment into the development of the deposits in the Kara Sea at $200-300 bln in the Black Sea – $50 bln. The agreed program of seismic exploration of the Tuapse trough is 70% over, it s planned to complete it in Q2 2012, after that the data will be analyzed. The drilling of the first exploratory well in both projects is planned for 2014-2015, the company said.
Besides this Rosneft and ExxonMobil agreed on the start of the study of the development of the sites with difficult to extract oil reserves of the Achimov and Tyumen formations in the area of the Priralomny, Mamontov and Priobsky deposits in the Western Siberia. It will allow the companies to start the negotiation of their joint projects on the development of difficult to extract resources and reserves which are assessed at the sites of Rosneft in the Western Siberia at 1.7 bln tons of oil, the joint report says.
Other Russian state companies will participate in the realization of the joint projects of Rosneft and ExxonMobil – United ship-building company (OSK) and Rostekhnologii. According to Mr. Sechin, OSK will build not less than 15 sea platforms. The 3-party agreement presupposes the projection and construction of the infrastructure for the geological exploration, development of the deposits and production at them. Rostekhnologii doesn’t still have any projects in the sphere of oil and gas service.
Rosneft and ExxonMobil said that the determining conditions for the strategic alliance was the changes in the taxation system. On Thursday at the meeting with the Prime Minister it was announced that the offshore projects would have a zero export duty, the differentiated preferences for the mineral extraction tax will be introduced for them, as well as a zero rate for the tax for property and VAT for the imported high-tech equipment. The respective order was signed by Mr. Putin, I. Sechin said.
The analyst of UBS, K. Cherepanov, says that the exchange of the assets of 2 companies is a normal practice. The possibility to participate in the projects in the USA, Canada, Gulf of Mexico for Rosneft is the attempt to diversify the business, increase the international presence and apply foreign technologies, the expert says. But for the state company it is more important to develop the offshore projects in Russia, which it is impossible to successfully realize without such a partner as ExxonMobil.
http://www.kommersant.ru/doc/1917564%
Translated by Galiya Musabekova
