Rosneft, BP sign upstream, downstream agreements

OAO Rosneft agreed to sell BP PLC a 20% share of Taas-Yuryakh Neftegazodobycha in eastern Siberia for $750 million.

The joint venture will further develop the Srednebotuobinskoye oil and gas condensate field, which was commissioned in October 2013 and produces about 20,000 b/d. The companies will also jointly undertake exploration of an area of mutual interest (AMI) in the region that covers 115,000 sq km.

In addition, they agreed to explore two other AMIs in the West Siberian and Yenisey-Khatanga basins covering 260,000 sq km. If successful, joint studies will lead to new joint ventures to obtain licenses and conduct exploration activities. Rosneft would own 51%, BP 49%.

Rosneft and BP also agreed to form a joint venture to carry out further appraisal work on the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI.

The transaction “underlines BP’s position and strategy as a successful long-term investor in Russia,” said David Campbell, president of BP Russia (OGJ Online, Nov. 26, 2012).

The companies also agreed to pursue a reorganization of their refining joint venture in Germany, Ruhr Oel GMBH. Rosneft acquired a 50% share in 2011.

Rosneft would double its minority shares in three refineries: Bayernoil, MiRO, and PCK Raffinerie. BP would own 100% of the Gelsenkirchen refinery and the DHC Solvent Chemie solvent production facility.

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