Exxon, Rosneft mull LNG plant in Russian Far East


NOVO-OGARYOVO, Russia -- US oil and gas conglomerate ExxonMobil and Russia's OAO Rosneft signed a deal Wednesday to broaden their existing joint venture by adding seven more licenses to develop hydrocarbon resources on Russia's Arctic shelf, ExxonMobil's deputy CEO Stephen Greenlee told journalists. 

Most notably, the companies plan to conduct a feasibility study on constructing a liquefied natural gas (LNG) plant on the island of Sakhalin off Russia's Pacific coast.

Rosneft is lobbying to be allowed to export LNG, which currently only OAO Gazprom is permitted to do by law.

Exxon and Rosneft formed an alliance in 2011 to develop potentially huge but largely untapped reserves on Russia's Arctic shelf and shale oil in Western Siberia.

As well as Exxon, Rosneft has partnership deals with Italy's eni and Norway's Statoil to develop offshore resources.

Rosneft is currently buying competitor TNK-BP in deals worth $55 billion that will create the largest listed oil producer in the world and will hand BP a 19.8% stake in the oil giant.

Dow Jones Newswires

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