RIA Novosti reported that Russia largest crude oil producer LUKoil and mid-sized oil firm Bashneft have closed deals on a joint venture and partnership to develop the giant Trebs and Titov oilfields in the Russian Arctic.

The statement said "Bashneft and LUKoil having completed the establishment of the joint venture to develop R. Trebs and A. Titov oil fields are proceeding to the active deployment of the project."

Under one of the agreements, LUKoil acquires a 25.1% stake in Bashneft-Polus which holds the license for the Trebs and Titov oilfields. The amount of the transaction is RUB 4.768 billion.

The Trebs and Titov deposits are among the most promising in the Timan-Pechora province with C1 reserves estimated at 78.9 million tons and 63.4 million tons of oil respectively. Russia's subsoil use agency granted Bashneft the license for the deposits in February following an auction in December 2010.

Mr Vagit Alekperov LUKoil head was quoted in the statement as saying that "Joint efforts of the oil workers of the two companies will undoubtedly result in the successful development of the Trebs and Titov fields, ensuring ramp-up of hydrocarbons production in Russia’s strategic region of Timan-Pechora. We are pleased to see that the infrastructure LUKoil has built in the adverse terrains will redound to the advantage of the partners."

Mr Alexander Korsik Bashneft President was quoted in the statement as saying that "We are pleased to express content with the constructive cooperation with LUKoil on the development of the Trebs and Titov fields, which will serve as a foothold for the company growth in the midterm. I am sure that the expertise of our teams, innovations and mutual understanding between the parties will be a guarantee of the project’s success."

LUKoil had invested about USD 1 billion in the development of Timan-Pechora. Total investment in the Trebs and Titov oilfields is estimated at USD 7 billion

(Sourced from RIA Novosti)