BP Agrees to $5 Billion More

According to a company statement, BP will invest $5 billion in developing the Sakhalin-5 project. 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.