The two companies intend to jointly implement gas projects in Russia and abroad focused on gas exploration and production, LNG production, supply, and marketing.
Rosneft and BP also reconfirmed their cooperation in European gas marketing. According to a memorandum of understanding, Rosneft’s and BP’s wholly owned subsidiary BP Gas Marketing Ltd. will enter a long-term agreement for supply of Rosneft-produced gas to European markets starting in 2019.
Igor Sechin, Rosneft chief executive officer, commented, “Cooperation with BP would provide Rosneft with both a new efficient gas monetization channel and the conditions required for the development of a new resource base including hard to recover gas reserves.”
David Campbell, president of BP Russia, said, “Gas is a growing proportion of BP’s portfolio, and, by the middle of the next decade, we expect around 60% of our production to be gas compared with around 50% today.”
BP Russian Investments Ltd. owns a 19.75% stake in Rosneft.