Rosneft and ExxonMobil Advance Strategic Cooperation

  Rosneft and ExxonMobil Advance Strategic Cooperation

  *Completed formation of joint ventures framework for Kara Sea and Black Sea
  *Finalized agreements on seven Arctic license areas in the Chukchi, Laptev
    and Kara seas
  *Establishing foundation for joint venture to implement West Siberia tight
    oil pilot project
  *Moving to next planning phase for LNG project in Russian Far East

Business Wire

ST. PETERSBURG, Russia -- June 21, 2013

Rosneft and ExxonMobil today announced the achievement of several milestones
under their 2011 Strategic Cooperation Agreement, including joint venture
formation for the Kara Sea and Black Sea projects, and establishing
foundations for joint ventures to explore seven other licenses in the Russian
Arctic and to manage the joint West Siberia tight oil project. The companies
have also agreed to move to the next planning phase for an LNG development in
the Russian Far East.

The Black Sea and Kara Sea joint venture operating companies,
Tuapsemorneftegaz SARL and Karmorneftegaz SARL respectively, will commence
project implementation activities as operator pursuant to agreement with
Rosneft, which is the license holder. Rosneft holds 66.67 percent interest and
ExxonMobil holds 33.33 percent interest in the two projects. The initial cost
of exploration in the two areas is estimated at more than US $3.2 billion, the
majority of which will be financed by ExxonMobil. In 2013 collection of data
for both regions will continue until the commencement of drilling operations
in the Kara and Black seas in 2014.

In February, ExxonMobil and Rosneft announced plans to increase the scope of
their strategic cooperation by adding seven new blocks in the Russian Arctic
in the Chukchi Sea, Laptev Sea and Kara Sea, spanning approximately 600,000
square kilometers (150 million acres). Rosneft and ExxonMobil have entered
into agreements that lay the foundation for joint venture entities for these
areas. Data acquisition is being planned for these blocks, which represent
some of the most promising and least explored offshore areas globally. The
license obligations stipulate that 14 exploration and appraisal wells will be
drilled and a significant amount of 2D and 3D seismic will be conducted over
the next 10 years.

Agreements are also now in place establishing the foundation for a new joint
venture for a tight oil pilot project in West Siberia, where data collection
operations are currently underway. Rosneft will hold 51 percent interest and
ExxonMobil will hold 49 percent interest in this project.

Also in place is an agreement identifying further steps for the development of
an LNG plant in the Russian Far East. Following the agreement, by the end of
2013 the parties will undertake work to determine an LNG plant site, gas
liquefaction technologies and commercial structure of the project. Once this
work is finalized, the parties plan to progress engineering definition.

Agreements were signed today at the St. Petersburg International Economic
Forum by Igor I. Sechin, Rosneft president and chairman of the Management
Board, and Rex W. Tillerson, chairman and CEO of Exxon Mobil Corporation, in
the presence of Russian President Vladimir Putin.

Commenting on the agreements signed, Igor Sechin said, “I am glad to note the
activities outlined in the Strategic Cooperation Agreement are being
implemented ahead of schedule. I would like to thank the teams from both
companies for their hard and coordinated work. Our cooperation touches upon
the most promising aspects of today’s oil and gas industry: Arctic shelf and
deep water areas in the Black Sea covering a total area of 773,000 square
kilometers, tight oil in West Siberia as well as a promising LNG project in
the Russian Far East. We are convinced that implementation of all these
projects will benefit both companies’ shareholders. We believe it will also
boost the development of the Russian oil and gas industry and will have a
multiplying effect on related industries, already creating market demand for
equipment, knowledge and technologies.”

“ExxonMobil is making a significant investment in Russia, and these agreements
serve as the foundation for our projects and future work together,” Tillerson
said. “Experience tells us that a good foundation is critical for success in
the Arctic and elsewhere. ExxonMobil’s Sakhalin-1 project with Rosneft is an
example where we have put this experience to work.”

Additionally, on June 11, 2013 Rosneft and ExxonMobil signed agreements
regarding the creation of the Arctic Research Center and the joint use of
technologies in different regions of the world. ExxonMobil will provide
funding for the initial research phase of the Arctic Research Center in the
amount of $200 million. Rosneft and ExxonMobil will equally fund the next $250
million to continue their joint research work. The partners’ interests are
Rosneft 66.67 percent and ExxonMobil 33.33 percent. The Arctic Research Center
will build on current best practices of Rosneft and ExxonMobil to create more
environmentally safe and efficient technologies.


Statements of future events and conditions in this release are forward-looking
statements. The Strategic Cooperation Agreement represents a binding outline
of terms, and closing of the transactions contemplated by the agreement is
subject to execution of definitive final agreements, receipt of necessary
regulatory approvals, and other customary conditions. Actual future results,
including project plans, timing, costs, and benefits realized by the parties
as a result of the transactions, could differ materially depending on the
outcome of future negotiations; the actions of governmental authorities and
regulators, including legal and legislative uncertainties; the outcome of
exploration programs; changes in prices and other market and economic factors
affecting the oil and gas industries; future technological developments; other
technical and operating factors; actions of competitors; and other factors
discussed under the heading “Factors Affecting Future Results” on the
Investors page of ExxonMobil’s website at The term "project"
as used in this release does not necessarily have the same meaning as under
SEC Rule 13q-1 relating to government payment reporting. A single project for
purposes of that rule may encompass numerous properties, agreements,
investments, developments, phases, work efforts, activities, and components,
each of which we may also describe informally as a "project."


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