From: EurActive
Published January 30, 2011 10:16 AM

ExxonMobil seals $1bn Black Sea oil deal with Russia

ExxonMobil, the biggest privately-controlled oil company in the world, will make a new investment in Russia for the first time in over a decade as Moscow seeks to thaw its frosty investor climate and keep its oil flowing.

Russian state oil company Rosneft will develop over a billion tonnes of Black Sea oil using a $1 billion investment by ExxonMobil, whose relationship with the world's top oil producing country has been poor in the 21st Century.


The deal was announced on 27 January in Davos and came just days after Rosneft unveiled an Arctic tie-up and share swap with Britain's BP.

Russia's Deputy Prime Minister Igor Sechin, who is also Rosneft's chairman, signed the deal with Rex Tillerson, chief executive of US No. 1 Exxon, at the World Economic Forum.

Sechin said the deal was proof that the investment climate in Russia had improved.

"We have managed to convince even Exxon of that," he said.

Rosneft officials said Exxon would invest $1 billion, and the deep-sea venture would be split 50/50 at the exploration stage, then 66/33 in favour of Rosneft at the development stage.

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