Exxon Mobil Corp. (XOM) and OAO Rosneft, Russia’s biggest oil producer, will announce joint international projects by early next year, an official for the Moscow-based company said today during a conference call.
“We will be entering on friendly terms, on a non- discriminatory basis,” Ruslan Svirshchevsky, Rosneft’s head of business development, said on a conference call with investors today. “We will complement our reserve base by quite significant number.”
Exxon, the world’s biggest company by market value, and state-run Rosneft yesterday agreed on an alliance that would give the U.S. company access to Russia’s Arctic resources by exploring three blocks in the Kara Sea, while allowing Rosneft to gain experience in deep-water and tight oil deposits in the U.S. and other areas.
Rosneft and Exxon agreed to get access to “several select high-quality exploration and production opportunities” in the U.S., Canada and other countries, Svirshchevsky said, declining to identify any projects. These include areas in the Gulf of Mexico and onshore Texas, deep-water and tight oil fields, and some projects are in the development stage, he said.
“It was one of the aspects why the proposals from Exxon Mobil was especially attractive to us,” Svirshchevsky said. Exxon’s Hibernia project was listed in a presentation on Rosneft’s website today. The Kommersant newspaper reported earlier today that Rosneft may enter that development.
BP Deal Collapsed
Rosneft’s original plan to develop its Kara Sea blocks in the Arctic with BP Plc collapsed after the British oil producer’s local billionaire partners blocked the deal, which also involved a $7.8 billion share swap.
U.S. State Department spokeswoman Victoria Nuland described the deal, which she valued at $3.2 billion, as “another example of the expanding relationship” between the U.S. and Russia. Nuland said that President Barack Obama and President Dmitri Medvedev have been working on broadening economic and trade ties.
She declined to comment on whether the deal would draw scrutiny from the Committee on Foreign Investment in the United States, the inter-agency government group that reviews transactions that may affect U.S. national security.
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