Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

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

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Rosneft, Statoil Sign Deal On Developing Fields In Arctic

share with twitter share with LinkedIn share with facebook
share via e-mail
0
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 alexander.kolyandr@dowjones.com

Stocks mentioned in the article : Rosneft' NK OAO, TNK-BP Holding OAO, Exxon Mobil Corporation
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NK ROSNEFT' PAO
08/22 GOVERNMENT 'TO DO ITS BEST' TO PRIVA : Russian Economy Minister
08/18 Timeline, key players in Russia's Bashneft modern privatisation
08/17 Russia regional boss - Bashneft sale should be postponed for up to five years
08/17DJANK BASHNEFT' : Bashneft Sale Likely After Rosneft Privatization, Says Russia De..
08/16DJNK ROSNEFT' : Weak Oil Prices Weigh Heavily on Rosneft -- WSJ
08/16DJNK ROSNEFT' : Weak Oil Prices Weigh Heavily on Rosneft
08/15 NK ROSNEFT' : Financial results for 2Q 2016
08/15DJRosneft Net Profit Almost Halves in First Six Months of 2016
08/15DJNK ROSNEFT' : Weak Oil Prices Weigh Heavily on Rosneft
08/11 NK ROSNEFT' PAO : Operating Results for Q2 2016 and H1 2016
More news
Sector news : Integrated Oil & Gas
08/26 STATOIL : No impact from Brexit on Norway gas exports to Britain - minister
08/25DJPETROLEO BRASILEIRO PETROBRAS : S&P Cuts Rio de Janeiro State's Credit Rating
08/25DJPETROCHINA : China Oil Drillers Take Hit -- WSJ
08/24DJPETROCHINA : and Cnooc Results Plunge
08/24DJPETROCHINA : and Cnooc Results Plunge
More sector news : Integrated Oil & Gas
News from SeekingAlpha
08/26 REPORT : Rosneft?s planned Indian oil deal may hit U.S. sanctions hurdle
08/17 Rosneft Oil Company (RNFTF) Q2 2016 Results - Earnings Call Transcript
08/17 Rosneft Oil Company OJSC 2016 Q2 - Results - Earnings Call Slides
08/17 Rosneft Oil reports Q2 results
08/16 Russia delays sale of stake in oil firm Bashneft
Advertisement
Financials ($)
Sales 2016 76 836 M
EBIT 2016 10 141 M
Net income 2016 4 402 M
Debt 2016 38 273 M
Yield 2016 2,62%
P/E ratio 2016 13,03
P/E ratio 2017 8,00
EV / Sales 2016 1,25x
EV / Sales 2017 1,09x
Capitalization 57 420 M
More Financials
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Average target price 5,10 $
Spread / Average Target -5,9%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Igor Ivanovich Sechin Chairman-Management Board & Vice Chairman
Andrey Removich Belousov Chairman
Petr Ivanovich Lazarev Finance Director
Valeriy Vladimirovich Nikitin Director-Information Technology
Artur Matthias Warnig Deputy Chairman
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NK ROSNEFT' PAO57 420
PETROCHINA COMPANY LIM..-11.26%193 960
TOTAL3.19%122 587
PETROLEO BRASILEIRO SA..85.07%55 673
ENI SPA-3.26%55 372
STATOIL ASA6.55%51 806
More Results