State-controlled oil company OAO Rosneft and Britain's BP PLC have signed an agreement on exploratory drilling off the coast of Russia's Far East island of Sakhalin, Rosneft said in a statement late Wednesday. Under the terms of the agreement a joint venture controlled 51 percent by Rosneft and 49 percent by BP will drill six exploratory wells in the East Schmidt and West Schmidt sections of the Sakhalin-5 and Sakhalin-4 projects respectively. So far the companies have invested US$80 million (¤62 million) in the two projects and a further US$700 million (¤543 million) will be invested in the future, the statement said. BP will finance the drilling and be reimbursed by Rosneft from oil sales in the event that commercially viable reserves are found. Numerous foreign oil companies are working to tap the oil-and gas-rich waters around Sakhalin. Rosneft is already pumping oil from the Sakhalin-1 project together with ExxonMobil, India's ONGC and a group of Japanese companies.
