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Rosneft and ExxonMobil Sign Agreement for Western Siberia Tight Oil Pilot Project

  Rosneft and ExxonMobil Sign Agreement for Western Siberia Tight Oil Pilot
  Project

Business Wire

IRVING, Texas -- December 07, 2012

Rosneft and ExxonMobil today signed a Pilot Development Agreement establishing
a joint project to assess the possibility of commercial production of tight
oil reserves at the Bazhenov and Achimov formations in Western Siberia.

The agreement was signed by Igor Sechin, president and chairman of the
management board at Rosneft, and Stephen Greenlee, president of ExxonMobil
Exploration Company. Rex Tillerson, chairman and chief executive officer of
Exxon Mobil Corporation (NYSE:XOM), was present for the signing, as well as
the senior management of both companies.

The document is another step towards implementation of the long-term strategic
cooperation agreement the companies signed in August 2011.

The companies will set up a joint venture to run a pilot program and potential
commercial production with equity interests of 51 percent for Rosneft and 49
percent for ExxonMobil. Work will be carried out at Rosneft’s 23 license
blocks covering a total area more than 10,000 square kilometers.

Rosneft and its production subsidiaries will provide staff and access to
existing infrastructure.

ExxonMobil will provide financing of up to $300 million for the pilot program,
as well as state-of-the-art technologies and specialists in geology,
development and well engineering and completion. ExxonMobil will also provide
production management services for drilling complex horizontal wells so as to
evaluate and commercially develop these tight oil reserves.

The pilot program will encompass broad-reaching work across a number of areas,
including drilling new horizontal and vertical wells using the latest
fracturing technologies, deepening existing wells and re-development of idle
wells. The companies also plan to run an advanced core survey program that
will include geomechanical surveys. Drilling will begin in 2013.

Upon completion of the pilot program, Rosneft and ExxonMobil will jointly
select blocks for commercial development in 2015. The two companies will draw
on their technical and production experience to ensure commercially viable
development and potential production growth in Russia’s West Siberian basin.

“Maximizing production efficiency at every field and exploring new
technologies to exploit the potential of tight reservoirs is a strategic
priority for Rosneft,” said Sechin. “I am certain that our experience and
infrastructure in Western Siberia, coupled with the state-of-the-art
technologies of our partner ExxonMobil, will allow us to begin developing
large tight oil reserves.”

Tillerson said ExxonMobil would use experience gained in North America
resource development.

“The strategic combination of Rosneft’s operational experience in the area and
ExxonMobil’s advanced technology gains from tight oil experience in North
America and elsewhere provides a strong capability to fully evaluate and
potentially develop this large tight oil resource,” said Tillerson.

CAUTIONARY NOTE:

Statements that reference future events or conditions in this press release
are forward-looking statements. In the future, the actual results, including
project plans, costs and benefits and production volumes realized by the
parties as a result of this agreement, may differ significantly from the
forecasts, depending on the actions of governmental authorities or regulatory
agencies, including possible changes in the law; the results of exploration
programs; changes in oil or gas prices and other market or economic factors
that affect the petroleum industry; the development of new technologies; other
technical and operational factors; the actions of competitors, and other
factors listed under the heading “Factors Affecting Future Results” on the
Investor page at the ExxonMobil website at www.exxonmobil.com. Additional
information about Rosneft is available on its website at www.rosneft.com.

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas company,
uses technology and innovation to help meet the world’s growing energy needs.
ExxonMobil holds an industry-leading inventory of resources, is the largest
refiner and marketer of petroleum products, and its chemical company is one of
the largest in the world. Follow ExxonMobil on Twitter at
www.twitter.com/exxonmobil.

Contact:

ExxonMobil
Media Relations, 972-444–1107
or
Rosneft Information Division
Tel.: +7 (495) 411 54 20/+7 (985) 762 6383
Fax: +7 (495) 411 54 21
 
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