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Rosneft signed key agreements at the XX St. Petersburg International Economic Forum

18 June 2016

At the XX St. Petersburg International Economic Forum, Rosneft signed key agreements covering the whole production chain: upstream, oil sales, logistics, technological cooperation, cooperation with Russian regions.

Rosneft signed major deals with foreign partners thus reasserting its status of the industry flagship company. Documents with BP were signed to create a new joint venture, Yermak Neftegaz LLC to conduct exploration in East and West Siberia, with about $300 million invested in geological data analysis. This agreement demonstrates that Rosneft is ready to open up its resource base, invite foreign partners both to share risks and increase and develop technological expertise. Moreover, Rosneft and the British company signed a cooperation agreement related to environmental safety practices in joint oil and gas projects. The areas of cooperation will cover sharing of information, best practices and technologies in the area of environmental safety. 

Signing agreements for entry of the Indian group of investors into the Vankor Project has become another key event at the Forum. Rosneft and the Consortium of Indian Companies led by Oil India Limited, Indian Oil Corporation Ltd. and Bharat PetroResources have signed an agreement of sale and purchase of 23.9% in Vankorneft and a shareholders agreement. This deal is a landmark event for both parties as it signifies entering a new stage of cooperation in Russia-India relationships in the energy sector. Having closed the deal, the investors will acquire a substantial stake and respective rights in one of Rosneft’s largest projects in the past decade.

In the area of supplies, Rosneft has signed  major export deals for two significant export directions. Rosneft and its long-standing partner, Polish company PKN Orlen  signed an extension of the long-term contract that provides for additional crude oil supply of 15 million tons, which shows the stability of Russian exports in the traditional European market. Rosneft and PetroVietnam signed an unprecedented contract to supply crude oil up to 96 million tons by 2040, which will enable Rosneft to strengthen its position in the Asian markets. The long-term-agreement cooperation model employed by the Company will ensure the stability, efficiency and consistency of Russia’s exports.

Rosneft also signed a number of important agreements with its Italian partners. Rosneft and Fincantieri – the largest European shipbuilding company with significant experience in design and building ships and special equipment worldwide –signed an agreement outlining the creation of a new joint venture to design and engineer a new type of vessel to be built at the Zvezda shipbuilding complex. The partnership fully complies with Rosneft’strategy of creating an advanced shipbuilding cluster in the Russian Far East. The cooperation with the Italian partners  provides for designing of the specific models of equipment having no counterparts on the Russian market.

Rosneft, Leonardo-Finmeccanica S.p.A. and JSC Russian Helicopters signed a Strategic Partnership Development Agreement. Rosneft confirmed its intentions to develop Russia’s helicopter industry to satisfy the company’s needs. The three-party agreement states that Leonardo-Finmeccanica shall supply 30 helicopters to Rosneft, with more than half of the order produced in Russia by 2018.

Rosneft signed agreements with a range of Russian regions of various Federal Districts, as follows: Regions of Samara, Penza, Arkhangelsk, Tomsk, and Tula, Komi Republic, and Republic of Ingushetia. The agreements are focused on investment activity development, implementation of innovative projects of high efficiency, provision of high-quality fuel to customers, as well as on cooperation in the field of social and economic programs aimed at maintaining of social stability in subjects of Russia.

Chief Executive Officer of Rosneft Igor Sechin gave a keynote speech at one of the most significant events of the Forum, Summit of Energy Companies attended by the heads of the leading companies of the industry. In his report, the Head of Rosneft described major trends and fundamental shifts in the global energy industry. 

The Head of Rosneft mentioned that, with regard to supplies to the international market, Russia has significant advantages over other countries: the developed export infrastructure; including pipeline; the relatively low leverage; the distribution network that has been tested for decades and completed successfully with long-term agreements obtained by Rosneft; and the integration into emerging East and solid West distribution markets. "Russia has a huge resource potential, and Russian oil projects are cost-efficient even if the oil prices are low," added the Head of Rosneft. "There are new big promising projects in Russia, allowing us to maintain the oil output and the investment level while the majority of foreign public and national companies are cutting their capital costs and are forced to re-evaluate their project portfolios due to the lack of attractive investment projects."

During SPIEF, Igor Sechin, in pursuance of the assignment of the Russian President Vladimir Putin honoured the Global Energy Award winner. The 2016 prize went to the academician of the Russian Academy of Science, Coordinator of Research at Boreskov Institute of Catalysis Valentin Parmon for a breakthrough development of new catalysts in the area of oil refining and renewable energy sources.

Rosneft proved its role of the major participant of St. Petersburg International Economic Forum. As an industry leader according to a range of financial and resource rates, the company aims at development of new projects. While commenting the overall results of the Forum, Igor Sechin said, "We are constantly increasing our work's efficiency and move towards turning the company into one of the leading transnational players - responsible, transparent and representing the industry's image throughout future decades. The important factor of this success is an efficient dialogue with our dear colleagues and partners."

Rosneft Information Division
June 18, 2016