This press release was issued jointly by Rosneft and BP.
Rosneft and BP Exploration Operating Company Limited signed a Heads of Agreement on Domanik formations. The document was signed today within the framework of the St. Petersburg International Economic Forum by Rosneft President and Chairman of the Management Board Igor Sechin and BP Russia President David Campbell.
The signature ceremony was led by President of the Russian Federation Vladimir Putin.
The Heads of Agreement provides for implementation of a joint pilot project by Rosneft and BP relating to the Domanik formations and, in the event of success, the possible development of unconventional Domanik resources in the Volga-Urals region. The joint venture company (Rosneft 51%, BP 49%) will be incorporated in Russia.
BP will compensate part of the historical costs to Rosneft for exploration of the Domanik formations and will provide carry financing of up to US $300 million for the pilot programme, which will be conducted in two phases at licence blocks in the Orenburg Region.