Rosneft & BP Agree on Strategic Cooperation in Gas Sector

Rosneft and BP signed an agreement on strategic cooperation in the gas sector on Friday, June 2 while at the St. Petersburg International Economic Forum (SPIEF).

The head of BP Russia, David Campbell, at the signing ceremony, noted that the British oil and gas company and Rosneft will study the possibility of cooperation in Europe, including the implementation of joint projects in the field of LNG.

“Rosneft and a subsidiary of BP, ‘BP Gas Marketing Limited’, plan to sign a contract of purchase and sale of gas produced by Rosneft to ensure additional supplies of Russian raw materials to the markets of Europe, from 2019," said the press release.

In November last year, Rosneft and BP announced the closing of a transaction on the creation of joint venture — limited liability company ‘Ermak Naftogaz’. Legally binding documents on the establishment of the joint venture were signed in June 2016 in the framework of the 20th St Petersburg International Economic Forum.

The joint venture will engage in exploration in two Zones of Mutual Interest (ZMI)- in Western Siberia and the basin of the Yenisei-Khatanga, of a total area of about 260 square kilometers. The share of Rosneft in Ermak Naftogaz accounts for 51% and BP — 49%.

At the end of March, Campbell, speaking at the Arctic Forum in Arkhangelsk, confirmed that BP will continue to invest in Russian projects, including in gas, and considers that the oil industry in Russia is developing successfully in terms of sanctions.

Dimitri Dolaberidze