BP to develop its business in Far East Russia

The British Petroleum (BP) international corporation considers the Sakhalin Island (the Far East of Russia) one of key regions for the further development of the company, the BP management stated regarding the Rosneft Oil Company's receiving a license for exploration activities in a part of a block of the Saklhalin-5 oil and gas project. As the Vostok-Media news agency reported, the alliance of BP, Rosneft and the Rosneft-Sakhalinmorneftegaz Oil Company was created in 1998 for the exploitation of hydrocarbon deposits of the Sakhalin-5 project. The shares of the companies in the alliance are 49 percent to BP, 25.5 percent to Rosneft and 25.5 percent to Rosneft-Sakhalinmorneftegaz.

The participants of the alliance will jointly perform all activities including geologic exploration of the depth of the field suggested by the license. Further, a joint venture created by the members of the alliance, will be the license holder.

The exploration license covers the Kaigansko-Vasyukansky field within the Vostochno-Shmidtovsky block of the Sakhalin shelf. The total block area is about 10,000 square kilometers. The exploration license suggests implementing a research program, including collecting seismic data and exploration drilling. Seismic data will be received by means of research, which is to be carried out by the Dalmorneftegeofizika and PGS research companies at the Sakhalin-5 block in the summer of 2002. The date of starting exploration drilling will be determined depending on the results of this research. The earliest term is 2004.

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