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Russia and Norway sign exploration pact

03rd September 2012

Rosneft and Statoil have signed an agreement designed to extract up to 2 billion tonnes of resources from the Barents Sea

A licence area agreed by Russian and Norwegian firms is located in the western part of the Barents Sea and its anticipated extractable resources are over 2bn tonnes

Russian oil giant Rosneft and Norwegian Statoil will pursue joint ventures in four areas of the Russian shelf, it emerged on Monday. The partners are establishing a joint venture for geological exploration which will be financed by Statoil.

One of the licence areas is located in the western part of the Barents Sea and its anticipated extractable resources are over 2bn tonnes. Three other areas are in the northern part of the Sea of Okhotsk and the total volume of those resources is 1.4bn tonnes. Statoil will receive one third in the joint venture and Rosneft two thirds. Statoil is not the first foreign partner for Rosneft.

“Rosneft has chosen that company because the Norwegians have been working in the northern seas for a long time and exactly in shelf oil fields. Statoil has a great experience in the development of oil fields and transportation of the extracted mineral resources. It is natural for the Russian company to choose that partner. ExxonMobil and ENI were chosen for some other shelf projects but that choice was determined by the contractors’ certain financial resources and the already existing relations with Rosneft,” according expert Dmitry Lutiagin.

In addition to working with shelf oil fields, the Norwegian company could offer the Russian partner an exchange of assets within the joint agreement, meaning areas that Statoil owns in the northern seas.

As for the two companies’ further cooperation after completing the exploration stage, certain arrangements must also have been provided because both Statoil and Rosneft have to agree about all conditions, from exploration and extraction to sharing the product, reported the Voice of Russia.