OAO Rosneft, the world’s biggest publicly traded crude producer, and State Oil Co. of Azerbaijan signed an agreement today in Baku on oil supplies.
The accord, which didn’t specify volumes, was signed in the presence of Russian President Vladimir Putin and his Azeri counterpart, Ilham Aliyev. They also signed an agreement on cooperation.
Socar said it agreed to set up a 50-50 joint venture with Rosneft to explore and produce natural gas in Azerbaijan, Russia and in third countries. The agreement also covers cooperation in sale of oil and oil products and joint use of infrastructure including oil pipelines and terminals, it said on its website.
Rosneft has signed supply deals with companies including China National Petroleum Corp., Glencore International Plc and Vitol Group since completing the $55 billion acquisition of Anglo-Russian TNK-BP in March. Russia has been seeking to expand its economic influence in former Soviet republics.
Azerbaijan is the third-biggest oil exporter in the former Soviet Union, after Russia and Kazakhstan.