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Russia's Rosneft, BP agree to jointly tap Arctic oil and gas

21 December 2017

Russian energy giant Rosneft and its shareholder BP have agreed to jointly develop oil and gas deposits in Russian Arctic Yamal-Nenets region, Rosneft said on Thursday.

The project “envisages the development of the traditional gas reserves of the Cenomanian deposit, pilot production and subsequent full-scale development of the Turonian deposit as well as oil production optimization and efficiency,” it said.

The deal covers the Kharampurskoe and Festivalnoye licence areas with total geological reserves exceeding 880 billion cubic metres of gas.

Rosneft will hold a majority stake of 51 percent, BP will hold 49 percent. Produced oil and gas will be marketed by Rosneft.

“The signed agreement is an important step forward in the development of global gas cooperation between Rosneft and BP,” Rosneft said in a statement.

Article originally published on uk.reuters.com