Russian state-run oil company Rosneft plans to invest about 16 per cent of its stake into the Sakhalin-5 project
Russian state-run oil company Rosneft plans to invest about 16% of its stake into the Sakhalin-5 project, which amounts to 51%, first vice president Sergey Alekseyev said at a press briefing in Moscow.
He said that under an agreement with BP, the foreign company will finance all geological exploration work.
Rosneft has the right to attract funds from outside creditors, and BP may support the company by providing guarantees.
Speaking about plans for joint activity with the US oil company Marathon Oil , Alekseyev said that at the moment the companies are not involved in negotiations
The Sakhalin-5 project includes the Kaigan-Vasyugan, East Shmidtovsky, Yelizaveta and Khanguzinsky blocks. Forecast reserves at the Sakhalin-5 contract zone are estimated at 783 million tonnes of oil and 432 bcm of natural gas. According to preliminary estimates, the project may cost from $3 billion to $5 billion. Sakhalin-5 drilling will begin on July 19, 2003.
The operating company Elvari Neftegaz, the Sakhalin-5 operator, was registered in Yuzhno-Sakhalinsk this year and the Rosneft license for the Kaigan-Vasyugan block was transferred to this company on March 31, 2004. Company shareholders include Rosneft (51%) and BP (49%).
