Domanik Oil AS, the joint venture of Rosneft and Statoil (share of Rosneft in the project is 51%, of Statoil - 49%), started drilling the first well as part of exploration program to study tight hydrocarbon reserves of Domanik sediments in the Samara region.

During the pilot phase planned for 2016-2019, Domanik Oil AS intends to drill and test at least three horizontal exploration wells, as well as to conduct advanced studies at the license areas of Samaraneftegaz, Rosneft subsidiary. The JV plans to use the most efficient development technologies, including multistage hydraulic fracturing.

Pilot drilling as part of the project for development of Domanik sediments opens new area of cooperation between Rosneft and Statoil. Therefore, the companies are progressing in implementation of previously reached cooperation agreements by joining their experience and competences for development of promising hydrocarbon reserves in Russia.

Domanik sediments in Volga-Ural oil and gas province have large hydrocarbon potential. These are low-permeable cherty limestone sediments; according to the characteristics of their filtration-reservoir properties they are classified as hard-to-recover hydrocarbons.

In 2013, Rosneft and Statoil signed an agreement on the basic principles of the project of the joint pilot development of Domanik deposits in 12 license areas of Rosneft in the Samara region. To-date, the parties have conducted a number of geological and geophysical studies of Domanik deposits in the license areas of Samaraneftegaz.

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 Statoil

Statoil ASA (OSE: STL, NYSE: STO) is an international energy company with operations in 36 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, we are committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. We are headquartered in Stavanger, Norway, with approximately 23,000 employees worldwide, and are listed on the Oslo and New York stock exchanges.