Rosneft and ExxonMobil have finalized their agreement on starting a collaborative initiative for creating the Arctic Research Center (ARC) in Russia. The two companies have plans to use the most cutting edge technology and support their joint ventures on an international scale.

In the beginning, the Arctic Research Center was named as the Arctic Research and Design Center for Continental Shelf Development. However, this name has now been shortened to the Arctic Research Center. The goal of the institution still remains the facilitation of joint ventures between the two companies in research, technical development, and technology implementation. Although the focus of the group is rather broad, the initial emphasis is on the Kara Sea.

The initial projects under the agreement are in the field of workforce safety and environmental control. Examples of these include geotechnical surveys, design criteria development, sea ice management, and development concept design. All these will be implemented by following the best current practices used in both Russia and the U.S. All along, the basic aim would be to design those technologies that are not only safe for the environment, but are also more effective and efficient.

Igor Sechin, who simultaneously serves as the chairman of the board and president of Rosneft, stated that all open projects that had been initiated in connection with the partnership of ExxonMobil and his company were quite challenging. As such, the ARC would serve as a great platform for developing the most advanced and the most efficient technologies. These new designs would help achieve the basic goals of the projects even if they were characterized by complex technological conditions, ever changing parameters, and difficult scenarios.

Sechin went on to add that the first preference for his company would be to ensure that the environment is safe and not exposed to any unnecessary risks. He stated that the ARC will develop technologies that would help in getting all of the joint projects implemented in a safe environment without any compromises on their efficiency. Thus, everyone engaged in the field of arctic exploration could benefit from these discoveries.

The president of ExxonMobil Sara N. Ortwein also shared her views in this regard. She stated that the prime reasons behind the success of her company are technology and expertise, and these two alone have lead the company to reach great heights in the last ninety years. She went on to say that the joint agreement between the two companies would provide an opportunity to combine the skills of ExxonMobil with the expertise of Rosneft. The combination of resources would definitely be powerful, and all the challenges in the arctic and along the deep waters can be conquered.

The cooperation agreement between these two companies also envisions long-term collaboration in a strategic manner. ExxonMobil will advance an amount of USD200 million for launching the project. Later on, the two companies will contribute USD250 million for continued research. Rosneft has a 66.67-percent share in the venture, and Exxon Mobil has a 33.33-percent share. All employees of the ARC will be based in Moscow and will carry on their research in teams. The goals of the research organization will be achieved through effective resource utilization and good communication between the technical and the management teams. Moreover, the first employees of the ARC will come from the staff of Rosneft and ExxonMobil.

The agreement between Rosneft and ExxonMobil was signed on June 11 in the city of Washington. The meeting was attended by the presidents of the two companies Sara Ortwein and Igor Sechin, the chief executive officer of Exxon Mr. Tillerson, as well as other high level executives from both companies.