BP has signed an agreement with Rosneft on strategic cooperation in gas and a memorandum of understanding (MoU) regarding the sale and purchase of natural gas in Europe.
Under the agreement, the companies will jointly implement gas projects in Russia and abroad with a focus on gas exploration and production and LNG production, in addition to supply and marketing.
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The MoU will see BP’s wholly owned subsidiary BP Gas Marketing sign a long-term sales and purchase agreement with Rosneft to deliver additional Russian gas supplies to European markets, as of 2019.
Rosneft CEO Igor Sechin said: “Cooperation with BP would provide Rosneft with both a new efficient gas monetisation channel and the conditions required for the development of a new resource base, including hard-to-recover gas reserves.”
According to the parties, the MoU represents another milestone in the development of strategic cooperation between them.
BP Russia president David Campbell said: “BP is pleased to expand its ongoing relationship with Rosneft through this agreement.
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By GlobalData“Shifting to gas is one of the pillars of BP’s strategy. It is important in order to meet the increasing demand for cleaner energy.”
BP noted that gas represents a growing proportion of the company’s portfolio, with the production planned to be scaled up to about 60% from the existing 50%.
The agreement was signed at the XXI St Petersburg International Economic Forum (SPIEF).
