Mubadala, Rosneft In Tentative Deal

Russian majority state-owned oil company Rosneft has signed a non-binding cooperation agreement with the UAE’s Mubadala Petroleum this week, aimed at fostering “greater cooperation between the two companies in the exploration and production sectors.”

The deal, signed at the St Petersburg International Economic Forum, will allow Mubadala to potentially participate in the development of Rosneft assets in Eastern Siberia, and also enable Rosneft to join Mubadala in its international projects. It remains unclear, however, if the two firms will take any concrete steps in the immediate term to jointly develop oil and gas assets.

This deal comes despite the imposition of US sanctions against Mr Sechin, a key ally of Russian President Vladimir Putin, as a result of the ongoing crisis in Ukraine. The sanctions regime does not target Rosneft directly. (CONTINUED - 263 WORDS)