The deal is a major score for Exxon, granting the Irving, Texas company access to some of the world's richest sources of crude oil and other hydrocarbons in the Black Sea and the Russian Arctic. In turn, Rosneft subsidiaries will take ownership stakes in three Exxon projects in the U.S. and Canada.
The companies agreed in August to form a partnership. They announced new details Monday in conjunction with a signing ceremony in Russia that was held at Russian Prime Minister Vladimir Putin's suburban residence. As part of the agreement, Exxon will work with Rosneft to develop oil Russia's prized offshore reserves in the Black and Kara seas. Rosneft does not have its own technology for deep sea drilling, so it needed a partner to develop the offshore projects. Exxon already has experience drilling in the Arctic regions of Canada.
Exploration already has started in the region, and the companies said that the first test wells could be drilled in 2014. Exxon and Rosneft said initial work in the region will cost about $3.2 billion.
For more: Exxon Mobil and Rosneft formalize agreement for oil projects in North America, Russia | CanadianBusiness.com
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