Eni, Rosneft Team Up in Russian Shelf Development

Today, Eni CEO Paolo Scaroni and Rosneft President Eduard Khudainatov, signed a strategic cooperation agreement in the presence of the Prime Minister of the Russian Federation Vladimir Putin, which provides for the joint development of the licenses in the Black Sea and the Barents Sea on the Russian shelf, the exchange of technologies and personnel as well as Rosneft’s acquisition of a participating interest in Eni’s international projects.

Under the agreement, Eni and Rosneft will set up joint ventures, with Eni holding 33.33% in each,for the joint development of Fedynsky and Tsentralno-Barentsevsky licenses in the Russian offshore of the Barents Sea, and Zapadno-Cernomorsky license in the Russian offshore of the Black sea. In accordance with the Russian regulation currently in place, Rosneft will remain owner of the licenses.

Eni will fund the exploration necessary for confirmation of the licenses’ commercial value, in compliance with the commitments.

The deposits are estimated to hold total recoverable resources of 36 billion barrels of oil equivalent. The Barents Sea prospects are very promising also thanks to the surrounding discoveries made by Eni in the Norwegian sector. Seismic data indicates that multiple prospects exist in the Zapadno-Cernomorsky license.

Rosneft President Eduard Khudainatov said: “The comprehensive agreement signed today is further proof that Rosneft is committed to doing business with world-class majors that have offshore production expertise, cutting-edge technologies and are ready to invest in long-term hi-tech projects in Russia. I strongly believe that our partnership will help boost the two companies’ resource base and capitalisation.”

Technology exchange is a key element of the strategic partnership. Eni’s technological contribution to the joint venture is expected to be significant given the company’s extensive offshore experience in Norway and other countries.

In addition, the agreement anticipates a programme of staff exchanges at all levels. This will strengthen the relationship between the companies and help share management experience.

The agreement also envisages Rosneft’s participation in Eni’s international projects.

 Eni’s CEO, Paolo Scaroni, commenting on the agreement said: “Today’s agreement is strategic for Eni as it will mark our exploration activities for many years. We have gained access to two vast and extremely promising areas in Russia, a great hydrocarbon producer. This success is the result of our long standing relationship with Russia, of the recent developements in west Siberia upstream and of our discoveries in the Norwegian Barents Sea, the first in the area”.

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Offshore Energy Today Staff, April 25, 2012