Rosneft President, Chairman of the Management Board Igor Sechin, and Chief Executive Officer of GE Jeffrey Immelt signed an agreement for joint ventures establishment. The document was signed in the presence of Prime Minister of the Russian Federation Dmitry Medvedev.

The agreement is aimed to increase scientific and technical collaboration between the two companies and in the first phase includes creation of two specialized centers.
Application Engineering and Training Center

The purpose of AE&TR Center is to develop Rosneft projects with the use of GE Oil & Gas (GE subsidiary) products and technologies. The key functions of the center include cooperation between Rosneft and GE as part of modernization of current and new solutions at construction of Rosneft oil and gas projects, from general conceptual design to specific product configurations, equipment localization for Rosneft projects, and training in the area of applied design and related technology paths for expansion of production potential among Rosneft engineers and technical managers. Priority areas of activity include development of solutions in the area of gas sales, including LNG and CNG, power generation, productivity enhancement, among others modernization of production practices, shelf and underwater equipment, refining and petroleum chemistry.

Research and Development Center

Research and Development Center activities will be focused on development of new joint technologies and modernization of existing technologies of partner companies. The key subjects of center activities will become technologies for gas monetization, oil refining and petroleum chemistry, including CNG (transformation of associated petroleum gas to GTL) and creation of new polymers, development of offshore and deep-water oil and gas fields, and EOR. In the center there will be created new technologies and solutions for appropriate protection of intellectual property.

Total downpayment to the centers from Rosneft and GE will amount to 20 million US dollars on a parity basis. The Parties will provide additional combined funding of 50 million US dollars when certain tasks are set. The Parties are going to jointly invest to the centers up to 400 million US dollars through 2020.

Created centers will help Rosneft to keep high performances of land-based mining and quickly investigate the Arctic shelf of Russia with the use of state-of-the-art and safe technologies.

Commenting on the signing Igor Sechin said that ‘implementation of this project will allow Rosneft and GE to create unique R&D platform in Russia. The most important task of the centers will be equipment and technologies localization for Rosneft needs. Project-based approach to the Research and Development Center activities will significantly increase the value of cumulative funding of research and technology solutions, which is the key factor for the development of Russian economy. Apart from that, implementation of the Agreement will allow to create additional jobs, and train high-level experts for the Company needs.’

GE Chief Executive Officer Jeffrey Immelt said: ‘We see great opportunities in the sustainable growth of the oil and gas sector in Russia, one of the largest in the world. Today we are pleased to build on our strategic partnership with Rosneft by signing an agreement focused on developing local expertise and technology solutions which will drive productivity and growth in the oil and gas sector in Russia.’

Rosneft Information Division
Tel.: + 7 (499) 517-88-97,
February 11, 2014

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