posted in:

Rosneft - www.youroilandgasnews.com

Rosneft and ExxonMobil sign agreement for Western Siberia tight oil pilot project

Thursday, Dec 13, 2012

Rosneft and ExxonMobil today signed a Pilot Development Agreement establishing a joint project to assess the possibility of commercial production of tight oil reserves at the Bazhenov and Achimov formations in Western Siberia.

The agreement was signed by Igor Sechin, president and chairman of the management board at Rosneft, and Stephen Greenlee, president of ExxonMobil Exploration Company. Rex Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), was present for the signing, as well as the senior management of both companies.

The document is another step towards implementation of the long-term strategic cooperation agreement the companies signed in August 2011.
The companies will set up a joint venture to run a pilot program and potential commercial production with equity interests of 51 percent for Rosneft and 49 percent for ExxonMobil. Work will be carried out at Rosneft’s 23 license blocks covering a total area more than 10,000 square kilometers.

Rosneft and its production subsidiaries will provide staff and access to existing infrastructure.

ExxonMobil will provide financing of up to $300 million for the pilot program, as well as state-of-the-art technologies and specialists in geology, development and well engineering and completion. ExxonMobil will also provide production management services for drilling complex horizontal wells so as to evaluate and commercially develop these tight oil reserves.

The pilot program will encompass broad-reaching work across a number of areas, including drilling new horizontal and vertical wells using the latest fracturing technologies, deepening existing wells and re-development of idle wells. The companies also plan to run an advanced core survey program that will include geomechanical surveys. Drilling will begin in 2013.

Upon completion of the pilot program, Rosneft and ExxonMobil will jointly select blocks for commercial development in 2015. The two companies will draw on their technical and production experience to ensure commercially viable development and potential production growth in Russia’s West Siberian basin.

“Maximizing production efficiency at every field and exploring new technologies to exploit the potential of tight reservoirs is a strategic priority for Rosneft,” said Sechin. “I am certain that our experience and infrastructure in Western Siberia, coupled with the state-of-the-art technologies of our partner ExxonMobil, will allow us to begin developing large tight oil reserves.”

Tillerson said ExxonMobil would use experience gained in North America resource development.

“The strategic combination of Rosneft’s operational experience in the area and ExxonMobil’s advanced technology gains from tight oil experience in North America and elsewhere provides a strong capability to fully evaluate and potentially develop this large tight oil resource,” said Tillerson.

Source: Rosneft

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

Other Project News

Technip wins Umbilical contract for Kaombo project in Angola 18-04-2014
Saipem announces awarded FPSO contracts in Angola worth more than $4 billion 18-04-2014
Shell announces Malaysia deep-water gas discovery 17-04-2014
Octagon 88 Resources announces Red Earth light oil project update 16-04-2014
Lamprell has received a new contract award for the construction and delivery of two Mobile Offshore Drilling Platforms 16-04-2014
New Dragados offshore contract secured for IKM Testing 16-04-2014
Ezion Secures a contract with an approximate value of USD43.7 million over a 3 year period to provide a service rig to support a South Asian Based Nat 16-04-2014
Ezion Secures a contract with a value of approximately USD35 million over a 3 year period to provide a service rig to support a middle eastern state 16-04-2014
Foster Wheeler awarded contract for incinerator in Vietnam 15-04-2014
Contract extension for Safe Hibernia 15-04-2014

Advertisers





[