Russia’s Rosneft company and the State Oil Company of Azerbaijan (SOCAR) have signed an agreement to create a joint venture on exploration and production of oil and gas in Azerbaijan, Russia and in third countries, Russia’s RIA Novosti agency reported on May 24.
The document was signed during the St. Petersburg International Economic Forum, by the head of Rosneft, Igor Sechin and SOCAR president, Rovnag Abdullayev.
The signature ceremony was led by President of the Russian Federation Vladimir Putin.
The parties agreed upon creation of a joint venture on a parity basis, and to include shares of participation in producing assets in Russia, Azerbaijan, and third countries into its authorized capital. The list of assets will be agreed upon further.
Commenting on the signing, Igor Sechin and Rovnag Abdullayev noted that this agreement will enable start of specific joint operations in the region of selection and implementation of large-scale projects in Siberia, in the Russian shelf of the Caspian Sea, and other water areas. It will also create opportunities for both companies to enter new markets.
The document was signed in follow-up of Cooperation Agreement between Rosneft and SOCAR from 13 August 2013, in which the parties intended to develop oil and gas exploration and production projects in Russia and Azerbaijan by creation of a joint venture.
