Rosneft signed a cooperation agreement with INPEX CORPORATION (INPEX) to jointly explore license offshore blocks Magadan-2 and Magadan-3 in the Russian section of the Sea of Okhotsk. Estimated recoverable resources of the two blocks stand at 1,577 million tonnes of oil equivalent.
The agreement, signed by Igor Sechin, Rosneft President and Chairman of the Management Board, and Toshiaki Kitamura, President and CEO of INPEX, envisages cooperation between the parties in setting up a joint venture to explore the above-mentioned blocks. INPEX will hold a 33.33% stake in the project.
Pursuant to the final agreements that are expected to be signed till the end of 2013 INPEX will fully finance geological exploration work at these blocks in line with approved programs. It is agreed that INPEX will reimburse the licensed blocks’ development expenses incurred by Rosneft, as well as 33.3% of one-off payment made by the Russian company during the course of license acquisition. Furthermore, the agreement provides for non-recurrent bonuses to be paid by INPEX to Rosneft for each commercial oil and gas discovery proportionally with its stake in the project.
Commenting on the agreement, Rosneft President Igor Sechin said, “Russian Far East one of the key regions of Rosneft operation. Signing the agreement with INPEX – one of the leading Japanese oil and gas companies – once again proves Rosneft’s commitment to developing its business in the region. Partnership between Rosneft and INPEX will contribute significantly not only to the development of the Russian Far East, but also to the development of economic relations between Russia and Japan, and will strengthen energy security of our partners”.