UPDATE 1-Total wants Russia offshore deal that Chevron quit

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Fri Jul 8, 2011 11:47am EDT

* Chevron quit Black Sea oil project with Russia's Rosneft

* Total offered to replace Chevron in project - Rosneft head

* Chevron, Rosneft geologists differed in deposit evaluation

(Adds why Chevron quit, details, quotes, Exxon in Russia)

KIRISHI, Russia, July 8 (Reuters) - France's oil producer Total has offered to replace Chevron as a partner to Russia's oil giant Rosneft in an offshore oil project on the Black Sea, Rosneft's head said on Friday.

"Total has made an offer (to replace Chevron) and we will decide on our partners by the end of the year," Eduard Khudainatov told journalists on the sidelines of an industry meeting at the Kirishi refinery near Saint Petersburg.

Last summer, Chevron signed a deal to join Rosneft in a $32-billion Black Sea oil exploration project, but the American super major has since pulled out.

"Our geologists differed in their evaluations (of the Val Shatskogo deposit)," Khudainatov said.

Earlier this year industry analysts said Chevron and Rosneft didn't see eye to eye on the choice of project contractors, where the joint venture would be domiciled and on the jurisdiction of arbitration in the event of dispute.

In January, Rosneft signed a deal with ExxonMobil to develop another Black Sea deposit adjacent to Val Shatskogo deposit, the Tuapse Trough. (Reporting by Vladimir Soldatkin; writing by Jessica Bachman; Editing by John Bowker and Jon Loades-Carter)

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