Eni to fund Russian geological works

Finance agreement: Eni has agreed to fund the geological works on three offshore Russian blocks under an agreement with Rosneft

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Josh Lewis

 23 July 2012 08:13 GMT

Russia’s Rosneft and Italy’s Eni have signed a finance agreement which will see the latter fund geological works on three offshore Russian licence blocks.

Rosneft said that under the agreement Eni would fully finance geological works stipulated in licence obligations for the Fedynsky and Central Barents blocks in the Barents Sea and the Western Chernomorsky Block in the Black Sea.

Eni will also compensate Rosneft for the majority of historical costs related to previously completed geological works on the three blocks.

The Italian company will see its investment returned from project cash flows once output starts at any of the blocks, however Rosneft said it was not obliged to return the investment if production does not begin.…

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