BP to invest $5bn in Sakhalin-5 project

BP will invest $5bn in developing the Sakhalin-5 project, the British company reported. Rosneft and BP have signed a corresponding framework agreement. According to the accord, the companies will retain their current stakes in the project (Rosneft has 51 percent and BP has 49 percent). Over $150m will be allocated for exploration drilling, which is planned to be completed by 2008.

The first well will be drilled this year within the Sakhalin-5 project. Reserves within this project are estimated at 700m to 800m tons of oil and 600bn cubic meters of gas.