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Wednesday, November 29, 2006

Gazprom, Rosneft sign parity deal on strategic cooperation

MOSCOW, November 28 (RIA Novosti) - Gazprom [RTS: GAZP] and Rosneft [RTS: ROSN] signed Tuesday a parity deal on strategic oil and gas cooperation, valid until 2015. "In line with agreements reached, Rosneft and Gazprom will develop cooperation in prospecting, producing, transporting and processing crude hydrocarbon resources, and purchasing and selling natural and associated gas," the Russian natural gas monopoly and state-controlled oil company said in a joint press release. The sides plan to jointly participate in tenders and auctions to receive rights for mineral resource extraction, and to implement joint projects. The two companies will coordinate activities and exchange information while carrying out exploration and prospecting work and compiling geological and geophysical databases. Gazprom and Rosneft are also ready to cooperate in implementing projects to set up gas processing facilities in East Siberia and Russia's Far East. In line with the agreement, Gazprom will buy from Rosneft gas extracted from West Siberian deposits that are connected to the gas transportation system. A task force will soon be set up to consider joint implementation of projects with high potential in Russia and abroad.
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