Rosneft and General Electric signed a long-term cooperation program.

The document involves construction plan of joint ventures for production of marine, oil and gas, and electrical equipment to ensure timely construction and commissioning of production facilities.

In particular, Rosneft and GE will continue their cooperation in developing ship-building projects of the Zvezda Shipbuilding Complex in Vladivostok. Cooperation between the companies provides for construction of a plant for ship steerable thrusters manufacturing as well as an enterprise, producing marine electrotechnical equipment.

As a part of their cooperation in the area of hydrocarbon production technologies, Rosneft and GE will proceed with launching wellhead equipment and flowing wellhead equipment manufacturing. The companies will also cooperate on a pilot project for remote monitoring and control of equipment at the assets of Ryazan Oil Refining Company.

Also, the program envisages further cooperation in the area of LNG production. GE and Rosneft’s subsidiary NGK Itera will continue to work on the project of founding Russia's first small-scale LNG plant based at Bratskekogaz company.

Rosneft, GE, and Transmashholding also signed a Letter of Intent providing for the local production of GE V250 marine diesel engines in Penza for further supply to Zvezda Shipbuilding Center. The delivery of the first units to Rosneft is expected in early 2018.The engines will be serviced at Zvezda's facilities.

Commenting on the program signing, Rosneft Chairman of the Management Board, Igor Sechin said: “The implementation of the program signed today with one of the global technology leaders ,signifies that our partnership is entering a new stage – industrial cooperation – which will enable us to meet the buoyant demand being formed by the Russian fuel and energy sector with the potential to jointly enter global markets.”

Jeff Immelt, GE Chairman and CEO, said: "We continue to see long-term development opportunities in Russia, including in sourcing from Russian manufacturers for our global businesses. Today, we are also pleased to be strengthening our partnerships with Rosneft and Transmashholding. This is a great example of GE working with leading Russian companies to tackle some of the region’s most technically intensive projects".

Notes:

In February 2014, an agreement to set up joint ventures was signed by Rosneft and GE, in the presence of the Prime Minister of the Russian Federation Dmitry Medvedev.

In May 2014 at the St. Petersburg International Economic Forum Rosneft and GE signed a technological cooperation agreement to promote the Research and Development Center setting-up initiative. The Agreement approved a mechanism for making separate target contracts aimed at research and development activities.

In June 2015 NGK Itera, a 100% Subsidiary of Rosneft, and General Electric at the St. Petersburg International Economic Forum signed an agreement of intent regarding cooperation in natural gas processing. The Parties agreed to assess a potential cooperation for gas processing using GE's technologies for small-tonnage production of liquefied natural gas (LNG).

In September 2015 Rosneft and GE as part of the Eastern Economic Forum signed a number of agreements to expand the program for localization of advanced oil and gas and marine engineering technologies in the Russian Federation. The agreements provide for manufacturing of wellhead equipment and flowing wellhead equipment as well as of steerable thrusters (ST).

OOO NGK ITERA is one of Russia's largest independent natural gas producing and marketing companies. Since 1998 ITERA has been developing its own gas production in the Yamalo-Nenets Autonomous District. ITERA has become the first private company to bring in production gas fields in Northern Russia. Rosneft consolidated OOO NGK Itera in July 2013.

GE has been working in Russia for nearly 100 years, bringing global expertise and localizing advanced technology with our strategic partners across power, oil & gas, transportation, and healthcare to solve some of the region’s biggest infrastructure challenges and improve people’s lives. Over 1,500 GE employees are working in Russia/CIS, with regional headquarters in Moscow.

About Rosneft

Rosneft is the leader of Russia’s petroleum industry and the world’s largest public oil and gas
company by liquid hydrocarbon production and reserves. The Company’s core operations are in hydrocarbon exploration and appraisal, production of oil, gas and gas condensate, offshore developments, refining, marketing of oil, gas and oil products inside and outside Russia, and investment activity.

Rosneft’s exploration and production geography spans across all key oil and gas provinces in Russia, namely Western Siberia, Southern and Central Russia, Timano-Pechora, Eastern Siberia and the Far East. The Company also implements projects in Kazakhstan, Algeria, Venezuela, Brazil, Vietnam, the UAE, Canada, and in the Gulf of Mexico. Offshore projects, including in the Arctic, take a special place in Rosneft’s portfolio. Rosneft has joined forces with ExxonMobil, Eni and Statoil to develop Russia’s offshore resources.

About GE Oil & Gas

GE Oil & Gas works on the things that matter in the oil and gas industry. In collaboration with our customers, we push the boundaries of technology to bring energy to the world. From extraction to transportation to end use, we address today's toughest challenges in order to fuel the future.