UPDATE 1-Russia's Rosneft, BP agree to jointly tap Arctic oil and gas

(Adds Rosneft comments, details)

MOSCOW, Dec 21 (Reuters) - Russian energy giant Rosneft and its shareholder BP have agreed to jointly develop oil and gas deposits in Russian Arctic Yamal-Nenets region, Rosneft said on Thursday.

The deal covers the Kharampurskoe and Festivalnoye licence areas with total reserves exceeding 880 billion cubic metres (bcm) of gas.

Rosneft said the project involved developing reserves of “the Cenomanian deposit, pilot production and subsequent full-scale development of the Turonian deposit, as well as oil production optimization and efficiency.”

The agreement would enhance gas cooperation between Rosneft and BP, the Russian company said.

Rosneft has focused on natural gas production, aiming to raise its output to 100 bcm a year in 2020 from 67 bcm in 2016.

Rosneft said Wednesday an international consortium had started production at the Zohr gas field in Egypt, the largest in the Mediterranean Sea and in which it has a stake.

Rosneft will hold a majority stake of 51 percent in the Russian project, BP will hold 49 percent. Produced oil and gas will be marketed by Rosneft. (Reporting by Vladimir Soldatkin; Editing by Maria Kiselyova and Edmund Blair)


Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at and follow us on Twitter @Breakingviews and at All opinions expressed are those of the authors.