On June 17 Rosneft Oil Company and Chevron Corporation announced in Novo-Ogarevo execution of mutual agreements outlining key principles of future joint exploration activity planned for Rosneft’s Shatsky Ridge off-shore license in the Black Sea.
The agreements were signed by Rosneft President Sergey Bogdanchikov and Chevron CEO John Watson. The signing ceremony was attended by Prime-Minister Putin and Rosneft Chairman and First Deputy Prime Minister Igor Sechin.
Pursuant to the agreements, Rosneft and Chevron intend to establish an operating company in Russia. Chevron will finance initial exploration activities, including seismic surveys and exploration drilling.
The Shatsky Ridge (Western Black Sea License Area) covers 8.6 thousand square kilometers and is located in the eastern waters of the Black Sea. Ten potential hydrocarbon structures have been identified, of which 5 appear promising as they contain approximately 80% of the license area’s resources, or approximately 860 million tons of oil under international classification. A seismic survey is currently in progress in the license area and drilling of the first exploration well is scheduled for the end of 2011.