Rosneft and BP have agreed to develop subsoil resources within the Kharampurskoe and Festivalnoye licence areas of the Yamalo-Nenets Autonomous Okrug in northern Russia, with total geological reserves exceeding 880 bcm of gas.

The project envisages the development of the traditional gas reserves of the Cenomanian deposit, pilot production and subsequent full-scale development of the Turonian deposit as well as oil production optimization and efficiency.

Rosneft will hold a majority stake of 51% and BP will hold 49%. Produced oil and gas will be marketed by Rosneft.

Completion of the deal will be subject to a number of regulatory approvals.

The signed agreement is an important step forward in the development of global gas cooperation between Rosneft and BP.

Commenting on the agreement, Igor Sechin, Rosneft CEO noted: 
"Rosneft and BP will make joint efforts to develop new deposits, including those containing tight gas. Our companies have all the necessary competencies and experience to effectively implement such complicated projects."

David Campbell, President BP Russia, said: 
“We are pleased to further enhance our cooperation with our partner Rosneft, starting a new gas project in addition to our existing joint projects which cover oil production and exploration.”