Russia. Rosneft plans to form JVs with Japan on oil and gas production


Rosneft plans to form JVs with Japan on oil and gas production, Vedomosti reports referring to a statement from Rosneft. The company also plans on May 26th to sign a protocol of intentions with the Japanese Agency for Natural Resources and Energy.
The State company considers a possibility of forming 2 joint ventures (Rosneft to hold 51%). One of the companies will carry out geological exploration and production at 11 deposits in the Eastern Siberia, the another one – will develop the districts of  “Magadan-1, 2, 3” at the shelf of the Sea of Okhotsk.
The President of Rosneft, E. Khudaynatov assessed the reserves at these deposits at more than 2 billion tons of oil and 1.5 trillion cubic meters of natural gas. To compare, the total potential oil and gas reserves of Russia make up 56.5 bln tons.
Vedomosti says that the State company doesn’t have the license to develop these deposits but in March the Ministry of Natural Resources promised to issue the permission by the end of 2011.
The Japanese companies are also supposed to participate in the modernization of some oil refinery plants and the construction of an oil-products pipeline from the oil refinery plant in Komsomolsk-on-Amur to the Far Eastern terminal of De-Castries. 
Japan is the third largest oil consumer and importer in the world after the USA and China. According to the estimation of the Central Intelligence Agency, the daily need of the country makes up 5.4 million barrels. By Jan 1st 2011 the proved reserves of Japan amounted to 44 millionn barrels. Japan’s provision by its own resources (not only oil) doesn’t exceed 16%.
Due to the lack of raw materials the national companies participate in the development of deposits around the world. The main directions of the investment are Norway and Great Britain in Europe, Kazakhstan and Azerbaijan in the Caspian region, Russia, Indonesia, Australia, Vietnam and New Guinea in Asia, Brazil and Canada in the Americas. The Government of Japan takes part in the oil and gas production projects in Russia, Australia and Indonesia. 
Rosneft is the largest Russian oil state company that produces and processes oil and gas. The company’s revenue in 2010 amounted to $63 bln, oil production – 2.3 mln barrels a day.
Translated by Galiya Davletgareeva 

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