Rosneft and BP today signed several agreements strengthening the long term strategic relationship between the two companies, at the St. Petersburg International Economic Forum.

Rosneft and BP signed final binding agreements for Rosneft’s sale to BP of a 20 per cent share of Taas-Yuryakh Neftegazodobycha (Taas), creating a new joint venture in East Siberia. The document was signed by Rosneft Management Board Chairman Igor Sechin and President of BP Russia David Campbell.

The venture will further develop the Srednebotuobinskoye oil and gas condensate field which is one of the largest fields in eastern Siberia, currently producing about 20,000 barrels a day. The Taas venture will also undertake the development of suitable infrastructure for further exploration and development of the region’s reserves. Related to this, Rosneft and BP will also jointly undertake the exploration of an associated Area of Mutual Interest (AMI) in the region, covering approximately 115,000 square kilometres.

Commenting on the signing, Igor Sechin said: “Eastern Siberia is a priority area for Rosneft. Taas-Yuryakh Neftegazodobycha is carrying out a set of actions with the aim to further expand local infrastructure and boost production capacities. I’m glad that our cooperation with BP is developing in such a promising area.”

David Campbell said: “I am pleased we have been able to conclude this transaction. It further deepens our relationship with Rosneft and underlines BP’s position and strategy as a successful long term investor in Russia. BP will continue to seek attractive investment opportunities to develop Russia’s substantial resources, whilst continuing to comply with international sanctions.”

Rosneft and BP have also agreed jointly to explore two additional Areas of Mutual Interest (AMI) in the West Siberian and Yenisey-Khatanga basins covering a combined area of about 260,000 square kilometers. This agreement commits BP and Rosneft jointly to conduct studies and, if successful, establish new joint ventures to obtain licences and perform exploration activities. Any joint ventures will be owned 51 per cent by Rosneft and 49 per cent by BP. As part of this agreement Rosneft and BP will also form a joint venture to carry out further appraisal work on the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI. Exploration activities in the two AMI will include screening studies, acquisition of seismic data, and drilling of exploration wells as new licences are added.

Within the framework of the Forum, Igor Sechin and David Campbell also signed a heads of terms to pursue a reorganization of the German Ruhr Oel GmbH (ROG) refining joint venture. The document envisages restructuring the JV by dividing between the parties shares in four refineries and associated infrastructure.

As a result of the planned deal Rosneft will double its shareholding the Bayernoil refinery – to 25% from 12.5%; MiRO refinery – to 24% from 12%; PCK Raffinerie – to 37.5% from 18.75%.

BP in exchange will consolidate 100% of the equity of the Gelsenkirchen refinery and the solvent production facility DHC Solvent Chemie.

The closing of the deal is subject to the fulfillment of conditions precedent, which include inter alia regulatory approvals.

The restructuring of Ruhr Oel GmbH will enable Rosneft and BP to re-focus their refining and petrochemicals strategies in Germany.

Commenting on the signing Igor Sechin said: “This agreement demonstrates Rosneft’s shift to a fundamentally new level of operations in Western Europe and confirms the Company’s commitment to the creation of the most efficient marketing structure, aimed at the creation of additional value for our shareholders. We are thankful to BP, our strategic partner, for the lessons learned during our joint work within ROG and their support for our new beginnings.”

David Campbell said “Our sole ownership of the Gelsenkirchen refinery will re-focus our refining business in the heart of Europe and is in line with our drive for greater simplification and efficiency.”