Rosneft, BP to Jointly Develop Sakhalin-4, Sakhalin-5

Rosneft and BP have signed shareholder agreements with regard to the Sakhalin-4 and Sakhalin-5 projects, Rosneft's press office has reported. The shares of Rosneft and BP in these projects are 51 and 49 percent respectively. The projects would be operated by Elvari Neftegaz, a joint venture set up in Sakhalin in 2003.

It is presumed, that BP will finance exploration on Sakhalin-4 fields until they are put into production. Rosneft will compensate BP for the expenses with its share in the revenue.

The press office also noted that creation of a joint infrastructure for oil production and transportation will help bring down capital costs.