Exxon and Rosneft, Russia’s state oil company, reached an agreement today to explore for oil in a Russian sector of the Artic Ocean. The agreement outlines plans for the two corporations to invest $3.2 billion in the exploration of the Kara Sea and Black Sea. These areas are widely unexplored and are amongst the most likely to produce oil.
The agreement takes the place of a former deal that Rosneft had with British Petroleum, where the two companies had solely traded stock. The new agreement will give Rosneft unspecified control of certain Exxon assets such as off shore oil sites in the Gulf of Mexico and on shore sites in Texas.
The two companies also plan to build an Arctic Research and Design Center for Offshore Developments in St. Petersburg. Exxon and Rosneft will use the facilities to conduct research and develop new drilling and production technologies.
In the oil world, the agreement is a huge accomplishment for Exxon, as a majority of similar sites such as Alaskan fields remain under environmental protection.
Source: ExxonMobil News Release
