Rosneft and Exxon Mobil Corporation (NYSE:XOM) signed another deal today, a new sign for mutual project called a “Pilot Development Agreement”, according to the deal both of them will assess the opportunity of commercial production of fixed oil reserves at Achimov and Bazhenov in Western Siberia.
Today’s signing is an extension to the join venture of both the companies had signed in August 2011, both the companies has continue their long-term strategic cooperation in which they will facilitate each other in potential commercial production with equity interests of 49% for ExxonMobil and 51% for Rosneft to run a channel program mutually.
The financing of approximately $300 million for the new project will be provided by ExxonMobil; according to the Pilot Development Agreement other facilities that are provided by the XOM include engineering, technologies and providence of specialists in the field geology will be provide by XOM. In-spite of all this company will also aid commercial development of the well plus provide production management services for drilling wells of these tight oil reserves.
While staff and access to present infrastructure will be provided by Rosneft and its production subsidiaries. This would be carried out at Rosneft’s 23 license blocks by wrapping a total area of approximately of 10,000 sq km.
According to the deal, both the companies will initially work on deepening existing wells, drilling new horizontal and vertical wells by means of the most modern technologies, which are expected to start from 2013.
After the collaboration of Rosneft and ExxonMobil and completion of drilling of wells and deepening of existing well, in their further step they will mutually concentrate on the commercial production which is expected in 2015. Seek place for better business opportunities especially potential production growth in Russia’s West Siberian basin.
The presidents of both the side Igor Sechin from Rosneft and Stephen Greenlee from ExxonMobil have sign the deal. In-spite of these two other official was also present at the sign ceremony.
Shares of Exxon Mobil Corporation (NYSE:XOM) dropped -0.25% in today’s pre-market.
Another rival company BP plc (ADR)(NYSE:BP) trading up 0.07% in today pre-market and is currently at $ 41.65. In the last 52 weeks BP plc stock traded in the range of $36.25 – $48.34. The average daily trading volume is 5.33 million shares.
On the other hand shares of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) dropped -0.98% in today pre-market and is currently at $19.10.The 52 week range of Petroleo Brasileiro Petrobras is $17.27 – $32.60 with average trading volume of 13.60 million shares.