Chevron Still In Talks With Rosneft

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Chevron, the second-largest U.S. oil company, continues to hold discussions with OAO Rosneft, Russia's largest oil company, after the Russian firm announced a major Arctic exploration with Chevron's primary rival, Exxon Mobil. Chevron CEO John Watson told reporters in Houston on Wednesday that the Exxon/Rosneft deal would not impact Chevron.

Exxon (XOM), the largest U.S. oil company, is replacing BP (BP), Europe's second-largest oil company, as Rosneft's partner on what could prove to be one of the world's most significant oil finds in the last 50 years. By some estimates, the area Exxon and Rosneft will explore, is home to 36 billion recoverable barrels of oil.

Along with Exxon, Royal Dutch Shell (RDS-A), Europe's largest oil company, and California-based Chevron (CVX) were believed to be the only legitimate replacements for BP.

Rosneft said in June it was talking to Chevron about possible cooperation in the search for Arctic oil, but industry experts say that was not necessarily the same prospects involved in the major deal signed between Exxon and Rosneft yesterday, according to Reuters.