Last year, embattled BP announced a big partnership/investment with Russia’s Rosneft.
In a big special report on the oil industry, Austrian bank Erste has published a nice explanation of what it’s calling the “Deal of the Decade.”
The cross-ownership of BP and the Russian Rosneft – a transaction worth 10 billions – has been called “deal of the decade” all around. It is not only the first significant interlocking participation of an IOC and an NOC, but the project is unique in the industry both in terms of magnitude and complexity. The joint exploration and development of the three EPNZ fields could change the oil market on a sustainable basis. The area of 125,000 km2 on the Russian continental shelf in the Arctic Ocean has not been explored yet; only seismic data are available so far. The resources are estimated at 37bn barrels of oil and 100 trillion cubic metres of natural gas, which is equivalent to 100bn barrels of oil. However, the field could become operative in 10-15 years at the earliest.
Photo: Erste Bank