Rosneft and ExxonMobil have signed a Pilot Development Agreement establishing a joint project to assess the possibility of commercial production of tight oil reserves at the Bazhenov and Achimov formations in Western Siberia (Russia). The companies will set up a joint venture to run a pilot program and potential commercial production with equity interests of 51% for Rosneft and 49% for ExxonMobil. Work will be carried out at Rosneft’s 23 license blocks covering a total area of more than 10,000 square kilometres. ExxonMobil will provide financing of up to US$300m for the pilot program, as well as state-of-the-art technologies and specialists in geology, development and well engineering and completion. Drilling will begin in 2013. Upon completion of the pilot program, Rosneft and ExxonMobil will jointly select blocks for commercial development in 2015. The two companies will draw on their technical and production experience to ensure commercially viable development and potential production growth in Russia’s West Siberian basin.