September 27, 2011 / 9:11 AM / 8 years ago

UPDATE 1-ExxonMobil expects to book Arctic reserves under SEC

(Adds detail, background)

* Exxon and Rosneft to jointly develop Arctic deposits

* Kara Sea blocks hold estimated 36 bln barrels of oil resources

YUZHNO-SAKHALINSK, Russia, Sept 27 (Reuters) - U.S. energy giant Exxon Mobil expects to book the reserves it will develop in Russia’s Arctic with state oil company Rosneft under U.S. SEC rules, the firm’s Russia country head said on Tuesday.

“From ExxonMobil’s perspective what is important is the SEC in New York... where we can put on our balance the oil that belongs to us,” Glenn Waller, the firm Russia’s president, told a news conference. “We are confident we will be able to book those reserves.”

In August, Exxon struck a deal with Russia’s top crude producer Rosneft to develop huge Arctic oil reserves under a joint venture agreement.

The ExxonMobil joint venture will develop three Kara Sea blocks in the Arctic with an estimated 36 billion barrels of recoverable oil resources.

Total resources are estimated at 110 billion barrels of oil equivalent — more than four times Exxon’s proven worldwide reserves.

Last week, Russia’s natural resources minister Yury Trutnev said the offshore deposits should be transferred to the foreign companies, but the reserves would be booked at the joint venture.

Reserves booking is a key aim of seeking international partnerships and a measure of value and security for their future operations. (Reporting by Melissa Akin; Editing by Clarence Fernandez and Jason Neely)

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