| St. Petersburg, March 4. Analysts believe that one new
term of the cooperation between Rosneft and British Petroleum on developing
the Sakhalin-5 oil field could involve British Petroleum's financing of
further development and preparation for extraction of the field. Broker
Credit Service' Maxim Shein said 'Rosneft would like British Petroleum
to cover all financing, including preparation for extraction which would
begin no earlier than 2010.'
At the same time, Shein does not rule out the possibility that a tender
for a production license could be organized when the field is ready for
extraction. He also said 'it is possible, however, that Rosneft could
receive a guarantee on extraction rights.'
As reported earlier by the Agency for Conflict Situations, the state
oil company Rosneft and British Petroleum are preparing a new agreement
on developing the Sakhalin-5 field. According to Rosneft's Dmitry Panteleyev
the companies 'are negotiating new conditions for cooperation.' He did
not comment further. Rosneft says the Sakhalin-5 field has approximately
783 million tons of oil and 432 billion cubic meters of natural gas. Maximum
annual extraction is expected to reach 26 million tons of oil and 22 billion
cubic meters of natural gas. The companies are expected to spend USD 149
billion on developing the field, which could yield USD 357 billion in
income.
On May 28, 1998 Rosneft and British Petroleum-Amoco signed a charter
agreement creating an alliance to develop the Sakhalin field. Rosneft
owns a 51% stake in the venture, BP-Amoco 49%
See also:
Production Sharing
Agreements
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