OJSC Rosneft and Italy's Eni have signed a financial agreement in the development of an earlier agreement on integrated partnership between the two companies.
The document was signed on Monday morning in Moscow during a meeting between Russian Prime Minister Dmitry Medvedev and Italian Prime Minister Mario Monti. The details of the document are still unknown.
The agreement for strategic partnership between Rosneft and Eni was signed on April 25. The companies also have signed an agreement for forming a joint venture for the development of the Fedynsky and Central Barents sections in the Barents Sea and the West-Chernomorsky section (Val Shatsky) in the Black Sea. Eni's stake in the JV will come to 33.33%. According to the agreement, Eni should finance the project's geological exploration, which is necessary for confirming these sections' commercial potential. In addition, the agreement on strategic partnership foresees an exchange of technology and personnel, as well as Rosneft's involvement in Eni's international projects.
Rosneft has estimated total costs for the projects with Eni in Russia at $100 billion, $2 billion of which is for geological exploration. According to preliminary estimates, total costs for the companies in the Barents Sea projects will come to $50 billion-$70 billion. Costs for the Black Sea project should come to $50 billion-$55 billion.
The Fedynsky section covers 38,000 square kilometers and is located in the ice-free section of the Barents Sea. Water depth measures between 200 and 320 meters. The section has already gone through 2D surveys, where nine prospective structures with 18.7 billion barrels of oil equivalent in recoverable reserves have been uncovered. According to the license obligations, 2D seismic surveys at the section should cover 6,500 square kilometers by 2017. Also, 3D seismic surveys should cover 1,000 square kilometers by 2018. Furthermore, one appraisal well should be drilled by 2020 and, if successful, an exploration well could be built by 2025.
From the north of Fedynsky neighbors the Central Barents section. Depth here varies between 160 meters and 300 meters. According to earlier implemented seismic surveys, three prospective structures have been uncovered with total recoverable reserves at over 7 billion barrels of oil equivalent. According to license obligations, 2D seismic surveys should cover 3,200 square kilometers at the section by 2016 while 3D surveys should cover 1,000 square kilometers by 2018. An appraisal well should be drilled by 2021 and, if successful, an exploration well should be drilled by 2026.
The third section for joint development is the West-Chernomorsky section in the Black Sea. This section covers 8,600 square kilometers at depths between 600 meters and 2,250 meters. Rosneft fully studied this section through seismic surveys and uncovered six prospective structures with total recoverable resources at around 10 billion barrels of oil. According to license obligations, two appraisal wells should be drilled at this section in 2015-2016.
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