Oil firms Rosneft and BP join to develop Russian licence blocks

Russian government-owned oil company Rosneft and BP, a global energy company headquartered in London, have agreed to explore and develop three licence blocks, EPNZ 1, 2 and 3 on the Russian Arctic continental shelf.

These licences were awarded to Rosneft in 2010 and cover approximately 125,000 square kilometres in a highly prospective area of the South Kara Sea.

Following completion of this agreement, which represents the first major equity-linked partnership between a national and international oil company, Rosneft will hold five per cent of BP’s ordinary voting shares in exchange for approximately 9.5 per cent of Rosneft’s shares.

The share-swap component of the alliance creates strategic alignment to pursue joint projects and demonstrates mutual confidence in the growth potential of both companies.