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LONDON (Alliance News) - BP PLC Monday said it has completed a deal with its Russian partner Rosneft to establish a new joint venture in Eastern Siberia.
The deal was originally announced back in June, when the pair signed binding agreements for Rosneft to sell a 20% share of its subsidiary, Taas-Yuryakh Neftegazodobycha LLC, to BP to form a new joint venture.
Under the deal, the joint venture will continue to develop one of the largest fields in Eastern Siberia, the Srednebotuobinskoye oil and gas condensate field. The joint venture will also undertake the development of suitable infrastructure for further exploration and development of the region's reserves.
BP's President of Russia, David Campbell, said: "We look forward to working together with our partner Rosneft on this project. We believe it will offer us new opportunities to increase productivity of the existing field and to discover new fields. The new joint venture reinforces BP's commitment as a long term strategic investor in Russia."
The Srednebotuobinskoye oil and gas condensate field uis located in the Sakha Republic, Yakutia, and has reserves of around 167.0 million tonnes of liquid hydrocarbons and 180.5 billion cubic metres of gas.
In November 2014, Taas-Yuryakh Neftegazodobycha produced its one millionth tonne of oil after the Srednebotuobinskoye oil and gas condensate field was commissioned in October 2013. The field currently has 50 producing wells, delivering around 2,500 tonnes of crude oil every day through a 169 kilometre pipeline to the Eastern Siberia-Pacific Ocean oil pipeline system.
BP shares were up 0.3% to 387.75 pence per share on Monday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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