In late May 2013, ExxonMobil made a decision to pay one of the largest oil enterprises in Russia Rosneft an additional amount of USD0.25 per every barrel of oil reserves.

The arrangement will go into effect when the oil companies develop the Tuapse Depression of the Black Sea and three sections of Vostochno-Prinovozemelskiye in the Kara Sea.

A representative from ExxonMobil stated that the bonus amount was payable only if Rosneft succeeded in discovering commercial oil deposits in those areas.

The Vostochno-Prinovozemelskiye site will be developed by Karmorneftegaz, while the Tuapse Depression will be worked on by Tuapsemorneftegaz. Both companies might receive additional compensation that would cover the initial startup costs incurred before oil production. Compensation might also be paid later when revenues from the production of hydrocarbons are earned.

Forecasts show that the investment amount for Vostochno-Prinovozemelskiye will be almost equal to USD2.2 billion. For the Tuapse Depression, an amount of almost USD1.2 billion would have to be invested. The two oil majors will provide to the project operators commercial loans that will have to be paid off only with the proceeds from the sale of marketable oil.

In the event oil is discovered, Rosneft will be the owner of it. However, the Russian oil major will have to sell some volume of oil to both Karmorneftegaz and Tuapsemorneftegaz. That volume is to be computed through a formula listed in the agreement between the companies. The two operators would then sell off the oil to other companies in the industry.

The agreement also states that gas will be sold separately from oil. Both ExxonMobil and Rosneft will establish a company, the sole purpose of which would be marketing gas. All the pertinent details on the formation of the marketing company will be spelled out in another agreement. However the two oil companies decide to set up this entity, it will ultimately have to operate in compliance with Russian gas laws, which allow companies to sell a limited volume of gas.

Rosneft’s board of directors has predicted that the net price tag for all the joint projects of the two companies related to hydrocarbon exploration and production in the areas of the Kara Sea and the Black Sea will amount to almost 775 billion roubles. The shareholders of Rosneft have already approved these transactions at a meeting that took place in mid-June.

Throughout these projects, both Rosneft and ExxonMobil will jointly participate in oil production projects. Previously, the main focus was on the development of the Vostochno-Prinovozemelskiye and the Tuapse Depression, but now other areas have also been added to the list of projects.