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BP-led group awarded five-year Sakhalin V exploration license Alliance will purchase seismic data being shot over area this year; depending on analysis, drilling on 10,000 square kilometers could begin as early as 2004 Petroleum News Alaska
BP announced July 10 in Moscow that Rosneft, an alliance of BP (49 percent), OJSC NK Rosneft (25.5 percent) and Rosneft-Sakhalinmorneftegas (25.5 percent), has been awarded a five-year exploration license for part of the offshore Sakhalin V block.
BP said the alliance, formed in 1998 to develop Sakhalin V hydrocarbons, will jointly carry out all operations, including geological studies of the subsurface of the license area. The license will be held by a joint venture company, which will be set up by the alliance parties.
The exploration license is for the Kaigansky-Vasuykansky blocks of the East-Smidt offshore area in the southern part of the Sakhalin V tract, about 10,000 square kilometers.
The exploration license specifies a work program that includes seismic acquisition and exploration drilling. BP said the alliance will purchase seismic data from a survey being undertaken this summer by Dalmorneftegas and PGS over Sakhalin V. Depending on the analysis of this data drilling could commence as early as 2004.
Alaska experience in similar climates The island of Sakhalin lies off the east coast of mainland Russia in the often ice-bound and technically challenging waters of the Sea of Okhotsk. BP said its 30 years of activity in Alaska will provide unique operating and environmental protection experience in similar climates.
BP said that Sakhalin has the potential to be a key area in BP’s and Rosneft’s growth strategy for Russia.
Onshore production of oil and gas began at Sakhalin in the 1920s and in the last 30 years there have been five giant discoveries of more than 500 million barrels of oil and 1 trillion cubic meters of gas. ARCO Sakhalin Inc. opened an office in Yuzhno-Sakhalinsk in 1999; since BP acquired ARCO the office has been the Sakhalin representative office of BP Exploration and Operating Co. Ltd. It employs nine.
BP said it is already involved in a number of community projects in Sakhalin, has worked with the British Council to establish an English language-training center in Yuzhno-Sakhalinsk and is also discussing contributing to a number of community projects up to a value of $5 million. u
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