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Shell’s Voser Looks to Rosneft for Exploration Deal

By Francine Lacqua and Brian Swint – Jan 28, 2011 9:55 AM GMT+0000

Peter Voser, chief executive officer of Royal Dutch Shell Plc, said he’s looking at a partnership with Russia’s state-owned OAO Rosneft to hunt for oil reserves.

“We are talking about potentially exploration” together, Voser said today in a Bloomberg Television interview in Davos, Switzerland. “Partnership with national oil companies is part of our business model. This is the way to go, we are driving this, and we’re quite happy to have these relationships.”

Shell, Exxon Mobil Corp. and BP Plc are teaming up with government-controlled companies in oil-rich countries to gain access to resources. Rosneft, Russia’s biggest energy company, this month agreed to swap $8 billion in shares with BP and explore Russia’s Kara Sea. Exxon and Rosneft yesterday signed a $1 billion agreement to search for oil in the Black Sea.

“Rosneft is in regular contact with global energy players,” Rustam Kazharov, a company spokesman, said today by phone from Moscow. He declined to elaborate or provide details.

The challenge for producers is to expand output enough to meet global energy demand, which is likely to increase 50 percent by 2030 and double by 2050, Voser said.

“It’s a key race for us to supply the market,” he said. “In the long run, we see a rising oil price because of the rise in energy demand, which clearly will go up significantly.”

Shell’s projects are designed to be profitable with an oil price between $50 a barrel and $90 a barrel, he said. The company last year agreed to expand cooperation with OAO Gazprom, the world’s biggest gas producer, both inside and outside of Russia.

To contact the reporters on this story: Francine Lacqua in Davos at [email protected] Brian Swint in London at [email protected].

To contact the editor responsible for this story: Will Kennedy at [email protected]

Play VideoShell’s Voser Interview

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