ExxonMobil and Rosneft Partner for Arctic Offshore Oil

By Admin
With the alliance between BP and OAO Rosneft officially terminated, Russias largest oil producer has been seeking a new partner to explore the Arctic...

 

With the alliance between BP and OAO Rosneft officially terminated, Russia’s largest oil producer has been seeking a new partner to explore the Arctic Ocean’s vast oil and gas reserves.  ExxonMobil Corp. has answered the call, and the two companies have teamed up to explore not only Arctic reserves, but also the Black Sea, Gulf of Mexico and onshore plays in Texas.

ExxonMobil and Rosneft plan to invest $3.2 billion into initial offshore exploration in the Arctic Ocean and Black Sea.  The deal between the two companies could result in as much as $500 billion of investments in infrastructure, exploration and production. 

“Access to new resources is the life blood of oil companies,” says Fadel Gheit, an analyst at Oppenheimer & Co. in New York. “Russia is one of the largest resources that’s still available. It’s like Exxon is now dating the girlfriend BP had a few months ago.”

SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK

Scout's Honor: ExxonMobil CEO Rex Tillerson & Yellowstone

China Sues ConocoPhillips over Oil Spill

Read the latest issue of Energy Digital!

Furthermore, this alliance may mark Rosneft as the first major Russian oil company to develop U.S. deposits.  It will test Rosneft’s capabilities in both deepwater and shale oil operations, with which the company is relatively inexperienced.

ExxonMobil CEO Rex Tillerson says, “I take it as a strong statement of Russian intentions to create competitive conditions to attract investments.”

ExxonMobil and Rosneft’s preliminary exploration project is a $1 billion venture in Russia’s Black Sea signed on January 27 earlier this year. 

Share

Featured Articles

5 minutes with Stuart Broadley, Energy Industries Council

EIC CEO Stuart Broadley reveals the challenges that lie ahead for oil and gas firms now net zero is becoming an increasingly important goal for businesses

SAP: Is 'complex' wind energy supply chain slowing adoption?

SAP digital supply chain and manufacturing expert Darcy MacClaren warns complex logistics and complicated regulations are limiting wind energy adoption

Decentralised energy key to circumventing grid delays

Aggreko is advising the sector to consider short to mid-term decentralised energy solutions as an effective means of maintaining business continuity.

Renewable energy to become top source of electricity by 2025

Renewable Energy

Nuclear energy — the unsung hero of the climate challenge

Renewable Energy

UK and US announce energy partnership

Oil & Gas