Statoil and Rosneft show progress in Sea of Okhotsk

North Sea of Okhotsk Licensing Blocks

Rosneft was awarded the (shown above) Kashevarovskiy, Lisyanskiy, Magadan-1, Magadan-2, and Magadan-3 licensing blocks (5 участков в Охотском море – Кашеваровского, Лисянского, и Магадан-1, Магадан-2, и Магадан-3) in December, of 2011.  As mentioned in a post from a year back, A Potential Magadan Oil and Gas Play, Rosneft had shown interest in the area, and the government of the Russian Federation was able to award the firm with the 5 blocks without auction as these were deemed “Blocks of Federal Significance”.

Statoil and Rosneft Cooperate to Explore 3 Licenses in Sea of Okhotsk

This year has shown sizeable cooperation between Statoil and Rosneft.  Several steps have been taken toward the eventual joint implementation and exploration of the Kashevarovskiy, Lisyanskiy, and Magadan-1 licensing blocks of the Sea of Okhotsk along with the Perseevskiy block of the Barents Sea (this article focuses on the Okhotsk licenses).

  • 5th of May, 2012 – Signed a cooperation agreement allowing for the joint exploration of the 3 Sea of Okhotsk licensing blocks (along with the Barents Sea block).  Stipulations concerning Rosneft’s opportunities to participate in Norwegian continental shelf operations.
  • June, 2012 – Both companies signed onto joint bidding for Norwegian continental shelf exploration licenses.
  • 30th of August, 2012 – Shareholder and operating agreements to establish joint ventures for the 3 Sea of Okhotsk licensing blocks (also for the Barents Sea block).

According to the agreement, as it pertains to the control of the individual Russian licensing blocks, Rosneft controls 66.67% and Statoil controls 33.33%.  Statoil is required to fund 100% of the exploration phase which includes the exploration wells expected to be drilled for Magadan-1 by 2016, Lisyanskiy by 2017, and Kashevarovskiy by 2019.

The June of 2012 signing marked the beginning of Rosneft’s pre-qualification process for Norwegian shelf operations.  While Statoil operates across a diverse international platform, Rosneft has come across as more so local to Russia and needs to build on and maintain its international image.  The initiative just announced on the 23rd of November, 2012 between Rosneft and Statoil was a declaration on Russian Arctic Environmental Protection and should help the international community see Rosneft as one that reflects Statoil’s values.  Both Rosneft and Statoil seem to be taking appropriate steps in laying the groundwork for broad future cooperation.

Sources

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