Rosneft and BP will explore oil and gas in Siberia

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Russian Rosneft and British BP have finalized a joint venture, named Yermak Neftegaz, for hydrocarbon exploration in Russia. The new company will focus on two areas of mutual interest located in western and northeastern Siberia and is spanning on 260,000 square kilometers. The main share of the company – 51 percent - will be owned by Rosneft and 49 percent will belong to BP.

BP officially committed their intention to fund US $300 million which are to be paid in two tranches. That move has finalized the deal between the two companies, signed in June, according to Rosneft’s CEO Igor Sechin. As for Rosneft’s contribution to the project, it will shape exploration and production licenses and “operational experience”, as BP put it, in the two areas in focus: West Siberia and the Yenisey-Khatanga basin in northeastern Siberia.

It is expected that the projects of Yermak Neftegaz will start this winterbeginning with appraisal-well drilling at the Baikalovskiy field in the Yenisey-Khatanga basin and a seismic survey of Zapadno-Yarudeyskoye field in West Siberia.