According to the deal signed in Davos, Switzerland on Jan. 27, the U.S.-based ExxonMobil – the largest privately-owned oil company in the world – will invest $1 billion in Rosneft for a joint-operated oil exploration and production venture in the Tuapse Trough.
The agreement between Russia’s Deputy Prime Minister Igor Sechin and Rex Tillerson, chief executive of Exxon, came at the World Economic Forum just days after Rosneft announced an agreement with BP regarding an Arctic project.
Located in the Black Sea basin, the Tuapse Trough is an 11,200-square-kilometers deepwater offshore region.
“Cooperation with ExxonMobil once again underscores our commitment to the principles of transparency and vision of the Russian energy industry as a part of an integrated global marketplace,” said Sechin, as reported by the oil industry news website Rigzone.com.
“ExxonMobil technologies will effectively complement Rosneft’s experience and resources. Development of this area will become the springboard for full-scale Black Sea basin development, and this challenge will require coordinated efforts of many nations and companies in the region.”
EurActiv reports that the offshore venture will be split 50/50 at the exploration stage, and 66/33 in favor of Rosneft at the development stage.
The agreement makes Exxon the second major U.S. oil company to invest $1 billion in the Black Sea, where no major oil reserves have been discovered in the past century. Chevron financed a $1 billion exploration and development of the Val Shatskogo project in the same region, EurActiv reports.