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Exxon Mobil reaches deal with Russia's Rosneft

Exxon Mobil reaches deal with Russia's Rosneft

January 27th, 2011 in News

DAVOS, Switzerland (AP) - Exxon Mobil Corp. signed a deal with Russia's Rosneft on Thursday to develop oil and gas resources in the Black Sea, a new boost for the country's lucrative energy sector despite concerns about the challenges of investing there.

Exxon Mobil Chairman and CEO Rex Tillerson announced the deal with Rosneft Chairman Igor Sechin, who is also Russia's deputy prime minister, at the World Economic Forum in Davos, Switzerland.

They did not immediately disclose the potential value of the deal, but said it could lead to crude oil sales to Rosneft's Tuapsinsky refinery and other Black Sea markets.

The agreement gives Exxon access to Russian resources and Russia access to Exxon's technology. They will explore an 11,200-square kilometer deep water offshore area in Russia's sector of the Black Sea.

"It's an important opportunity to expand our activities to new areas now," Tillerson told reporters at the announcement.

Sechin hailed the deal as a sign that Russia is open for investment.

Last week oil giant BP Ltd. signed a deal with Rosneft to exploit the Arctic Sea, and BP chief Bob Dudley insisted that he was confident about the investment climate in Russia despite his companies difficulties with Russian investments in the past.

Concerns about Russia's legal problems, state interference and security - after a deadly airport bombing Monday - have surfaced at the Davos forum.

Russian President Dmitry Medvedev gave a speech Wednesday night in which he insisted that investors shouldn't be scared away.