BP and Rosneft sign production, exploration and refining agreements

BP and Rosneft said on Friday that they have signed several agreements strengthening their long-term strategic relationship at the St Petersburg International Economic Forum.

The two companies signed final binding agreements for Rosneft’s sale to BP of a 20% share of Taas-Yuryakh Neftegazodobycha (Taas), creating a new joint venture in East Siberia. The document was signed by Rosneft chairman Igor Sechin and president of BP Russia David Campbell.

The venture will further develop the Srednebotuobinskoye oil and gas condensate field which is one of the largest fields in eastern Siberia, currently producing about 20,000 barrels a day.

The Taas venture will also undertake the development of suitable infrastructure for further exploration and development of the region’s reserves.

David Campbell, president of BP Russia, said: “I am pleased we have been able to conclude this transaction. It further deepens our relationship with Rosneft and underlines BP’s position and strategy as a successful long term investor in Russia. BP will continue to seek attractive investment opportunities to develop Russia’s substantial resources, whilst continuing to comply with international sanctions.”

The two companies also agreed to jointly explore areas in Siberia. If successful, they will form a joint venture, which will be owned 51% by Rosneft.

At 10:06, BP shares were down 0.5% at 432.25p.