Rosneft and BP Exploration Operating Company Limited signed a Heads of Agreement on Domanik formations. The document was signed today within the framework of the St. Petersburg International Economic Forum by Rosneft President and Chairman of the Management Board Igor Sechin and BP Russia President David Campbell.

The signature ceremony was led by President of the Russian Federation Vladimir Putin.

The Heads of Agreement provides for implementation of a joint pilot project by Rosneft and BP relating to the Domanik formations and, in the event of success, the possible development of unconventional Domanik resources in the Volga-Urals region. The joint venture company (Rosneft 51%, BP 49%) will be incorporated in Russia.

BP will compensate part of the historical costs to Rosneft for exploration of the Domanik formations and will provide carry financing of up to US $300 million for the pilot programme, which will be conducted in two phases at licence blocks in the Orenburg Region.

About BP

BP is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.

About Rosneft

Rosneft is a Russian oil industry leader and the largest public oil and gas company in the world. Rosneft’s main operations are exploring for and producing oil and gas and producing and selling petroleum products and petrochemicals.

Rosneft is the world’s largest company by proved liquid hydrocarbon reserves as well as the undisputed leader by hydrocarbon resources among publicly traded oil and gas companies.