Rosneft ups exploration spending to 8 bln rubles in Q4 due to seismic in Norway
MOSCOW. Feb 1 (Interfax) - Rosneft's exploration expenses increased from 6 billion rubles in Q3 2012 to 8 billion rubles in Q4 due to seismic exploration work offshore of Norway, according to Rosneft management commentary on the company's financial statement to International Financial Reporting Standards (IFRS).
"In 2012 exploration expenses were 23 billion rubles and increased by 76.9% compared with 2011 due to increased volumes of seismic exploration works at the blocks in the Black sea and Arctic offshore," the commentary said.
Rosneft spent 75 billion rubles on exploration and production in Q4, compared to 65 billion rubles in Q3.
Other expenses were up to 23 billion rubles in Q4, versus 9 billion rubles in Q3.
"The increase in other expenses in the fourth quarter was mostly due to recognition of impairment in the value of unproved reserves and impairment of certain assets resulting from annual inventory revision, and the write-off of non-production costs. In 2012 and 2011 other expenses amounted to 50 billion rubles and 48 billion rubles, respectively," the commentary said.
At the beginning of this year, Rosneft President Igor Sechin told Russian President Vladimir Putin that the company, together with Statoil, has already drafted applications to participate in tenders for several fields on the Norwegian shelf.
"We have now bid in a tender together with Statoil for a number of deposits on the Norwegian continental shelf. This is a condition of our agreements, and we are working in full cooperation and mutual understanding with our Western partners in this matter," Sechin said at the time.
Rosneft and Statoil signed a series of agreements last summer concerning joint operations in Russian and on Norway's shelf. In particular, the parties agreed on joint participation in tenders for the development of sections in Norway's part of the Barents Sea. The companies planned to jointly evaluate the prospects of sections in the zone of mutual interests, and to apply together to the pertinent state agencies in Norway. The idea was that a Rosneft subsidiary to be set up in Norway would bid for 33.33% stakes in the sections.