ROME (dpa-AFX) - Russian oil major OAO Rosneft on Monday said the company and its subsidiary Val Shatskogo has signed an agreement with Eni Energy Russia B.V. to finance geological works at three offshore Russian license blocks. Eni Energy Russia is the Russian unit of Italy's integrated energy company Eni SpA (E).
The blocks under the deal include the Fedynsky and Central Barents blocks in the Barents Sea and the Western Chernomorsky block in the Black Sea.
As per the agreement, Eni will fully finance geological works stipulated in license obligations. The company noted that expenses for geological exploration outside of the license obligations will be split between both of them in line with their stakes in the projects.
Eni has 33.33 percent stake, while Rosneft has 66.67 percent stake in the projects.
In addition, Eni will compensate the majority of historical costs on completed geological works at the Russian offshore blocks. Eni's investment will be returned from project cash flows once production is launched at any of the blocks.
Rosneft added that it will not be obliged to return the investment if production does not begin.
On June 21, both Rosneft and Eni had concluded a number of agreements to create joint ventures for Russian offshore projects. This was the first step to practically implement their April 2012 cooperation agreement.
Copyright RTT News/dpa-AFX
© 2012 AFX News
