Rosneft, Exxon to explore Black Sea

MOSCOW, Jan. 28 (UPI) -- Russian oil company Rosneft said it reached a deal with U.S. supermajor Exxon Mobil to explore for hydrocarbons on the Black Sea shelf.

Rosneft signed a deal with American energy company Chevron last year to explore a separate Black Sea block. Exxon Mobil, the Russian oil company's second-largest partner in the Black Sea, signed on for additional exploration activity, Russia's state-run news agency RIA Novosti reports.

Both companies will target the Tuapse Depression, which could hold as much as much as 7 billion barrels of oil equivalent, Rosneft company directors said.

"The quality of Russian companies' cooperation with one of the largest oil companies is improving," Igor Sechin, a board director at Rosneft and Russia's deputy prime minister, was quoted as saying.

Rosneft landed a deal with British supermajor BP recently to explore for oil and gas in Russia's arctic regions.

Exxon Mobil said in its energy outlook for 2011 that, while natural gas is expected to dominate the energy sector for some time, conventional hydrocarbons would still reign supreme.

"Oil, natural gas and coal will continue to meet most of the world's needs during this period because no other energy sources can match their availability, versatility, affordability and scale," the company said in a statement.