Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  MOSCOW INTERBANK CURRENCY EXCHANGE  >  NK Rosneft' PAO    ROSN   RU000A0J2Q06

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Rosneft, Statoil Sign Deal On Developing Fields In Arctic

share with twitter share with LinkedIn share with facebook
share via e-mail
05/05/2012 | 06:58pm CEST

--Rosneft, Statoil sign a potential $100 billion deal to develop fields in Russia's Arctic

--Statoil deal structured similarly to Rosneft deals with Exxon, Eni

--Statoil will have 33.33% stake in JV with Rosneft

--- Deals follow Russia's tax breaks for offshore fields

(Adds details on the deal, background, TNK-BP's, BP's interest in Arctic)

Norway's Statoil ASA (STO, STL.OS) signed Saturday a potential $100 billion cooperation agreement with Russian state oil company Rosneft (>> Rosneft' NK OAO) to develop Russia's mostly untapped offshore energy resources in the Arctic.

Statoil joined Exxon Mobil Corp. (>> Exxon Mobil Corporation) and Italy's Eni SpA (E, ENI.MI), which signed similar deals earlier 2011, in a so-called "scramble for the Russian Arctic" following Russia's approval of long-awaited tax breaks for the potentially rich offshore fields.

Russia faces declining oil production from its traditional oil regions and is eager to attract Western energy companies with money and expertise to develop the Arctic shelf. The move to open the Arctic shelf to foreign investors received support from Russian President-elect Vladimir Putin, who was at the signing ceremonies.

People familiar with the matter said that Russia's energy czar, Deputy Prime Minister Igor Sechin--who isn't expected to join the new Russian government to be announced in the coming days--had a prominent role in securing all three agreements.

Statoil's deal is structured similarly to those signed by Exxon and Eni with Rosneft. Statoil will set up joint ventures with its Russian partner to develop fields in the Barents Sea and Sea of Okhotsk, holding 33.33% in each. Statoil is to pay all costs for exploration, in addition to some historic costs and possible bonuses to the Russian company. The agreement also envisages Rosneft's participation in Statoil projects in Norway's offshore zones.

"Partnership between Rosneft and Statoil will contribute significantly to the development of economic relations between Russia and Norway, signifying a new era of unprecedented levels of trust," said Rosneft President Eduard Khudainatov. The deal followed the final demarcation of the sea border between Russia and Norway in 2011.

"We aim for early access at scale in new and promising basins, positioning us for high-impact exploration. This agreement is at the core of our strategy, supporting our long-term growth ambitions," said Helge Lund, chief executive of Statoil, in a statement.

The companies will jointly explore the Perseevsky license in the Russian part of the Central Barents Sea and three licenses--the Kashevarovsky, Lisyansky and Magadan-1--north of Sakhalin island in the Sea of Okhotsk. The four offshore licenses cover an area of more than 100,000 square kilometers and may demand an investment of between $65 billion to $100 billion dollars over decades.

Statoil is not new to Russia, being one of the first Western oil majors to open an office in Moscow after the collapse of communism. Until recently, however, it has failed to secure any big deal in the country. Statoil is part of an international consortium, together with Total SA (TOT, FP.FR) and Gazprom (OGZPY, GAZP.RS), to develop the Shtokman liquefied natural gas project off the Russian Arctic Circle, but the project has suffered a number of delays on the investment decision.

Together with Russia's second-largest oil company, Lukoil Holdings (LUKOY, LKOH.RS), Statoil is developing the West Qurna-2 field in Iraq but is planning to sell its stake to the partner.

"The deal has been discussed for some time, and it's really good that it's finally done," Troika Dialog analyst Valery Nesterov said, adding that the fields "are not at all bad for exploration"

"It's a sign that Russia is eager to intensify exploration at the Arctic shelf, and is trying to minimize risks by diversifying the partners," he added.

Another Western player, BP PLC (BP) said Saturday it is also interested in participating in Arctic projects in Russia. The company may only invest in Russia through its 50-50 joint venture with a group of local billionaires, TNK-BP Holding's (>> TNK-BP Holding OAO), in order to avoid violating a shareholders' agreement following a London court's decision. Last year BP's Russian partners forced the company to give up an Arctic exploration project and share-swap deal with Rosneft.

Chris Einchcomb, TNK-BP's senior vice president of exploration and appraisal, said Saturday the company responded positively to Rosneft's invitation to participate in the Arctic projects. "We look forward to starting working group meetings with Rosneft in the nearest future," he said, adding that the company is able to bring in BP's and its own offshore experience.

A BP spokesman said the company has yet to be presented with TNK-BP plans for activities in the Arctic, and "it will be premature to comment on these specific developments." Lukoil has also expressed interest in partnering with Rosneft on the shelf.

Troika's Nesterov said with more Arctic deals being signed with foreign companies, fewer fields remain for private Russian companies.

-By Alexander Kolyandr, Dow Jones Newswires; +7 495 232-9192 [email protected]

Stocks mentioned in the article : Rosneft' NK OAO, TNK-BP Holding OAO, Exxon Mobil Corporation
Stocks mentioned in the article
ChangeLast1st jan.
BP 1.35% 516.5 Delayed Quote.-2.51%
ENI 1.29% 16 End-of-day quote.14.46%
EXXON MOBIL CORPORATION 0.14% 79.3203 Delayed Quote.-6.35%
LUKOIL - GDR 0.00%-End-of-day quote.0.00%
NK LUKOIL PAO --End-of-day quote.
NK ROSNEFT' PAO --End-of-day quote.
STATOIL -0.35% 200.7 Delayed Quote.14.95%
TNK-BP HOLDING OAO --End-of-day quote.
TOTAL 1.21% 50.3 Real-time Quote.7.94%
TOTAL 2.69% 50.645 Delayed Quote.6.33%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on NK ROSNEFT' PAO
04:12pNK ROSNEFT' : The great Russian oil game in Iraqi Kurdistan
04/18Senior bank regulatory official to be named China Huarong chairman - sources
04/14Venezuela empowers oil minister Quevedo to reform energy sector
04/10NK ROSNEFT' : Rosneft starts production and sales of Euro 6 gasolines with impro..
03/29Pirelli's Russian shareholder LTI plans to stay after lock-up period ends
03/23GLENCORE : China's CEFC investigation hits $9 billion Russian oil deal
03/21Rosneft, Bashneft Withdraw Case Against Sistema
03/21EXCLUSIVE : Rosneft, Eni fail to discover oil at Black Sea well - source
03/21EXCLUSIVE : Rosneft, Eni fail to discover oil at Black Sea well - source
03/20Glencore sees Rosneft shares still going to China's CEFC
More news
News from SeekingAlpha
04/18Eni says not leaving Rosneft venture despite Russia sanctions 
04/09RSX : Panic Brings Opportunity 
03/29A Leader In Dividend Yield 
03/19Rosneft Oil reports FY results 
03/16A Case For India And Oil Prices 
Financials ($)
Sales 2018 119 B
EBIT 2018 15 653 M
Net income 2018 6 381 M
Debt 2018 70 043 M
Yield 2018 5,21%
P/E ratio 2018 7,97
P/E ratio 2019 6,44
EV / Sales 2018 1,08x
EV / Sales 2019 1,03x
Capitalization 58 003 M
Duration : Period :
NK Rosneft' PAO Technical Analysis Chart | ROSN | RU000A0J2Q06 | 4-Traders
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 8
Average target price 6,76 $
Spread / Average Target 23%
EPS Revisions
Igor Ivanovich Sechin Chairman-Management Board & Vice Chairman
Gerhard Schroeder Chairman
Petr Ivanovich Lazarev Finance Director
Valeriy Vladimirovich Nikitin Director-Information Technology
Artur Matthias Warnig Deputy Chairman
Sector and Competitors
1st jan.Capitalization (M$)
TOTAL7.94%162 867
STATOIL14.95%86 651