Rosneft has begun exploration work at the East Prinovozemelsky 1 and 2 license blocks in the Kara Sea. Geological surveying has been started one year ahead of the license schedule. Work will run through October 2012. RN Shelf Far East, a Rosneft subsidiary, will carry out the work.

3D seismic on an area of 3,000 square kilometres will be carried out at the East Prinovozemelsky 1 block. Three vessels will survey the area: Western Trident, capable of carrying up to 12 seismic cables, will carry out seismic, with support from 2 Russian vessels – Neftegaz 61 (bathymetric survey of the seabed) and Kapitan Kosolapov. The contractor is Dalmorneftegeophysica, a leader in the Russian marine seismic industry. Advanced technologies from WesternGeco, a global leader in marine seismic, will be used in the surveys.

2D seismic on an area of 5,300 kilometres will be carried out at the East Prinovozemelsky 2 block. Work will be performed by the Russian seismic vessel Geolog Dmitry Nalivkin and supported by Sleipner. The contractor is MAGE, a leading Russian marine seismic company with extensive experience in this region.

Rosneft is carrying out its geological exploration programme in the Kara Sea in strict compliance with all Russian environmental requirements and license terms. Aside from seismic, the 2012 season will also see the completion of environmental fishery management and hydrometeorological surveys.

Site investigation work is also planned at the East Prinovozemelsky 1 block. The results will be used to develop plans for drilling the first wildcat wells.

To meet the challenges of exploring Arctic deposits, the specially created Arctic Research and Design Centre has been tasked with accumulating knowledge, technology and experience, as well as performing the full cycle of research and design works for the exploration and development of offshore fields. The centre will monitor ice conditions, make preparations for icebreakers, design ice-class offshore structures and pipelines capable of operating in Arctic conditions and provide other material and organizational support. The centre will also be responsible for carrying out hydrometeorological surveys and developing new technologies to help implement offshore projects. Safety and environmental protection will be one of the centre’s focus areas. A special emergency response service will operate at the centre.

Rosneft Information Division, August 16, 2012