Russian Heavyweights Ink Joint Venture Agreement

Rosneft, Ministry of Industry and Trade of the Russian Federation, Gazprom, NOVATEK, Gazprombank, Sovkomflot, and United Shipbuilding Corporation signed a Joint Venture Agreement in relation to the implementation of vessel, drilling rig and marine equipment construction and design projects at the 21st World Petroleum Congress.

The parties have agreed to engage FESC (Far Eastern Shipbuilding And Ship Repair Center) as the common order placement center for the purposes of contractor selection and awarding of all marine equipment design and construction contracts with Russian and international contractors.

Russian Vice-Premier Arkady Dvorkovich said: “The companies agreed on their intention to become partners in the Far Eastern Shipbuilding Center (FESC) and will hopefully soon agree on the entry terms and conditions, probably in a matter of several weeks. The government, on its part, is fully supportive of these efforts.”

The parties will put together a work group, to be coordinated by the Ministry of Industry and Trade.

Igor Sechin,Rosneft CEO and Management Board Chairman said: “This specialized shipbuilding cluster in the Far East is intended to obtain competencies and localize operations inside Russia, in connection with a major order for the equipment needed to develop offshore fields.”

[mappress]

June 17, 2014