Rosneft Oil Co. (ROSN.MZ) said Thursday that it will partner with BP PLC (BP.LN) to develop gas resources in the Yamalo-Nenets region of northern Russia.
Rosneft said the two companies will develop subsoil resources in the Kharampurskoe and Festivalnoye license areas, with total geological reserves exceeding 880 billion cubic meters of gas.
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Rosneft will take a 51% stake and BP 49%.
The project will develop traditional gas reserves at the Cenomanian deposit on the licenses. It also includes pilot production and subsequent full-scale development of the Turonian deposit and oil-production optimization, said Rosneft.
Completion of the development deal is subject to a number of regulatory approvals.
Rosneft shares were down RUB0.70, or 0.2%, at RUB292.60 at 1515 GMT, while BP shares were up 8.20 pence, or 1.6%, at 516.80 pence.
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(END) Dow Jones Newswires
December 21, 2017 10:42 ET (15:42 GMT)