Statoil and Rosneft Agree to Jointly Bid for Exploration Licenses in Norwegian Barents Sea

Statoil and Rosneft Agree to Jointly Bid for Exploration Licenses in Norwegian Barents Sea

Statoil and Rosneft signed agreements on joint bidding for exploration licenses in the Norwegian Barents Sea and on Joint Technical Evaluation covering two Russian onshore assets.

This concludes the first implementation agreements envisaged in the strategic cooperation that the two companies entered into on 5 May, 2012.

The agreements were signed by Statoil CEO Helge Lund and Rosneft Chairman and President Igor Sechin at the World Economic Forum in St. Petersburg.

“These agreements show that Statoil and Rosneft are moving rapidly to implement the cooperation agreement signed on 5 May,” says Statoil CEO Helge Lund.

“The speed with which we are proceeding reflects our joint commitment and determination to realize the potential of the strategic cooperation,” he continues.

The agreement on exploration cooperation identifies an Area of Mutual Interest in the Norwegian Barents Sea for the 22nd Licensing Round. Statoil and Rosneft also agree to evaluate joint bidding in subsequent licensing rounds in the Norwegian Barents Sea.

Following the execution of this agreement, Rosneft will initiate the process to become pre-qualified as licensee on the Norwegian Continental Shelf.

“We are happy to see our cooperation – launched in May – develop so rapidly” says Rosneft President Igor Sechin.

“The documents signed today testify to a high level of mutual confidence between the two companies and great teamwork by their project groups. Our partnership gives Rosneft access to substantial resources in the Norwegian section of the Barents Sea while putting together accumulated expertise and cutting edge technologies of the two companies will ensure the efficient development of tight oil fields in Russia”.

“The partnership between Rosneft and Statoil is an opportunity to give additional substance to the ambitions of both Norway and Russia to strengthen energy cooperation in the High North following last year’s ratification of the agreement on delimitation of the continental shelf and economic zones in the Barents Sea” says Lund.

The Joint Technical Evaluation Agreement covers oil shale deposits at the Khadumsky formation in the Stavropol territory and highly viscous oil located below the gas cap at the Severo-Komsomolsky field in the Yamalo-Nenets autonomous district.

If the parties see development of these fields as commercially viable they will set up an operating company with Rosneft and Statoil holding respectively 66.67% and 33.33% equity stakes. Statoil will cover all agreed expenditures of the technical studies, including seismic surveying and drilling of vertical and horizontal wells.

Following the signing of the agreements today, Statoil and Rosneft will now focus on how to structure the cooperation to explore the Perseevsky license block in the Russian Barents Sea and three blocks in the Sea of Okhotsk, namely Magadan 1, Lisyansky and Kashevarovsky.

The strategic cooperation agreement also envisages the acquisition by Rosneft of interests in selected Statoil international projects.

Subsea World News Staff , June 21, 2012;  Image: Statoil