Both companies have been undergoing changes in their long-term strategies with a focus on cutting emissions and developing renewable energy.
Within 10 years, BP aims to cut hydrocarbon output by up to 40% and achieve net carbon neutrality by 2050.
Meanwhile, Rosneft unveiled in December new objectives under its low-carbon agenda until 2035, which will prevent greenhouse gas emissions of 20 million mt in CO2 equivalent and help achieve net carbon neutrality in the same timeframe as BP.
The new deal intends to help BP and Rosneft “deliver more energy with less carbon” through new low-carbon technologies, methane reduction and energy efficiency.
“Rosneft and BP will also jointly evaluate new projects envisaging the use of renewables, opportunities for carbon capture, utilization and storage (CCUS), as well as developments for hydrogen,” the joint press release said.
The strategic cooperation will touch not only upstream, but also downstream businesses, including the development of advanced fuels.
Rosneft itself is already considering production of greener and cleaner fuels, such as hydrogen, bio-diesel and sustainable aviation fuel.
BP and Rosneft will also study the issue of natural forest sinks, biodiversity and trading of carbon credits amid the looming EU carbon border tax.
“Joint efforts of our two companies, as the world energy industry leaders…will also provide a significant contribution to overcoming the challenges the industry and the society face in the climate action and the satisfaction of growing global economy demand for energy resources,” Rosneft CEO Igor Sechin said in the release.