"Today's events will be well received, no doubt, by the world market because new horizons are opening up. One of the world's leading companies, Exxon Mobil, is starting to work on Russia's strategic shelf and deepwater continental shelf," said Putin. Under the deal, Exxon and Rosneft will invest an initial $3.2 billion in the early phase of developing East Prinovozemelsky Blocks 1, 2, and 3 in the Arctic Kara Sea and the Tuapse licensing block in the Black Sea. But the final figures will go much higher. "It's hard to even pronounce such figures direct investment could amount to 200, 300 billion and if we also consider the development in the territory, the infrastructure, the construction work needed, then the figure could go as high as 500 billion (US dollars)," said Putin, smiling. "The government of the Russian Federation will cooperate with you to ensure the success of your work," he added. Rex Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), who attended the ceremony, said ExxonMobil will benefit Russian energy development by working closely with Rosneft. "The agreement today represents a significant expansion of the Rosneft ExxonMobil joint activities both in Russia and as you noted, importantly, in international opportunities as well," said Tillerson, seated next to ExxonMobil Development Company President Neil Duffin in talks with Rosneft and Russian government officials. "I appreciate very much the strong expression of support from the Russian Federation government for Rosneft to enter into this alliance agreement with ExxonMobil," continued Tillerson. The agreement was signed by Rosneft President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin at a ceremony following talks. The deal provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobils exploration opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas (USA ), as well as additional opportunities in other countries. The companies have also agreed to conduct a joint study of developing light oil resources in Western Siberia. The companies will create an Arctic Research and Design Center for Offshore Developments in St. Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production and ice-class drilling platforms, as well as other Rosneft projects. |
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