Exxon Mobil, the largest U.S. oil company, and OAO Rosneft, the Russian state-run oil producer, announced a $1 billion partnership that will see the two oil giants team-up to explore for oil in the Black Sea. Exxon will invest $1 billion in Rosneft for a joint-operated oil venture in the Tuapse Trough.
Texas based Exxon (XOM), a Dow component, follows rival Chevron (CVX), the second-largest U.S. oil company, in making a $1 billion Black Sea Investment. Chevron financed a $1 billion exploration and development of the Val Shatskogo project in the same region, according to EurActiv.
The Exxon/Rosneft venture will be split 50/50 at the exploration stage, and 66/33 in favor of Rosneft at the development stage, EurActiv reported. The agreement was reached between Deputy Prime Minister Igor Sechin and Exxon CEO Rex Tillerson at the World Economic Forum in Davos, Switzerland last week.
Earlier this month, Rosneft and BP (BP), Europe's second-largest oil company, announced a $16 billion share swap that will see the two companies partner together to explore three blocks in the Russian region of the Arctic Circle.