By Ian Walker
LONDON--Oil majors BP PLC (BP) and Rosneft (ROSN.MZ) said Friday
they have signed several production, exploration and refining
agreements, strengthening the long term strategic relationship
between the two companies.
Under the agreements, BP will buy a 20% share of Taas-Yuryakh
Neftegazodobycha from Rosneft, creating a new joint venture in East
Siberia. They will also jointly explore an associated area of
mutual interest in the region, covering 115,000 square
kilometers.
In addition Rosneft and BP have agreed to explore two additional
areas in the West Siberian and Yenisey-Khatanga basins covering a
combined area of about 260,000 square kilometers, committing them
to establish new joint ventures to obtain licenses and perform
exploration activities. Any joint ventures will be owned 51% by
Rosneft and 49% by BP.
As part of this agreement, Rosneft and BP will also form a joint
venture to carry out further appraisal work on the 2009
Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga
AMI.
"BP will continue to seek attractive investment opportunities to
develop Russia's substantial resources, whilst continuing to comply
with international sanctions," BP Russia President David Campbell
said.
The companies plan to reorganize the German Ruhr Oel GmbH
refining joint venture by dividing shares in four refineries and
associated infrastructure.
As a result, Rosneft will double its shareholding in the
Bayernoil refinery to 25% from 12.5%, MiRO refinery to 24% from
12%, and the PCK Raffinerie to 37.5%, from 18.75%.
BP in exchange will consolidate 100% of the equity of the
Gelsenkirchen refinery and the solvent production facility DHC
Solvent Chemie.
"This agreement demonstrates Rosneft's shift to a fundamentally
new level of operations in Western Europe and confirms the
Company's commitment to the creation of the most efficient
marketing structure, aimed at the creation of additional value for
our shareholders," Rosneft Management Board Chairman Igor Sechin
said.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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