BP And Rosneft To Exploit Extensive Arctic Gas Resources
Zacks Investment Research | Dec 21, 2017 08:14PM ET
BP (LON:BP) Plc (NYSE:BP) and Rosneft have entered into an accord for exploring the extensive reserve of natural gas and oil in the Arctic area, per the Russian energy firm.
Kharampursky and Festivalny are the license blocks that will likely be explored and developed by the British and Russian energy players. The companies expect a total of 880 billion cubic meters (bcm) of natural gas from both the blocks. However, the project awaits sections from the regulatory bodies.
In the joint venture for Arctic development, BP is expected to have 49% ownership while the remaining 51% stake will be in the possession for Rosneft. Investors should know that Rosneft will engage in the marketing of natural gas and crude produced from the project.
Rosneft added that along with BP, it will be exploring new prospects that will include tight gas. The firms are confident about successfully exploiting the complex project given its vast expertise and competencies.
As per media resources, with this agreement, BP and Rosneft will be developing limestone gas and oil. Since the United States put sanctions on the development of shale deposits of Russia – per Reuters, BP is not going against the sanctions.
London-based BP is among the leading integrated energy players in the world. The stock has rallied 11.5% year to date, outperforming the 5.1% gain of the Original post
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