Russia’s state-controlled oil giant Rosneft and U.S. oil major ExxonMobil will make a final decision on jointly developing offshore deposits in the Kara Sea in the Russian Arctic in late 2016 or early 2017, Rosneft said on Wednesday.
“The companies plan to make a final investment decision on the full-scale development of Kara Sea deposits at the turn of 2016-2017,” the company said in a video presentation for investors.
Both companies announced plans on Monday to establish two joint ventures to explore East Prinovozemelsky Blocks 1, 2 and 3 in the Kara Sea in the Russian Arctic and the Tuapse License Block in the Black Sea. Rosneft will hold 66.7 percent in both joint ventures.
Rosneft and Exxon Mobil signed a $3.2 billion agreement to work jointly at these projects last year.
The deal gives Exxon, which already works with Rosneft on the Sakhalin-1 offshore project in Russia's Far East, access to substantial oil reserves in Russia. Rosneft, which was in search of a partner to provide it with shelf technologies it lacks, will be now able to operate on Exxon Mobil's turf in the United States - in the Gulf of Mexico, in Texas and in Canada.