2 Mar '09
Rosneft and BP have ditched plans for further development of the West-Schmidtovsky oil field under the Sakhalin-4 project, news agency REGNUM reported today, citing sources in both companies.
The West-Schmidt Neftegaz JV set up in 2006 has stopped all work under this project, the sources said.
It is a joint decision, the two firms claimed.
A 2007-2008 agreement stipulated the drilling of three wells on the oil field, the report said. Reportedly, only two were bored and both turned out to be “dry.”
According to Troika Dialog estimates, the two wells ate up about $100m in investment.
The JV has declined to continue trying “as it is not expedient economically,” REGNUM quoted JV sources as saying.
The JV still owns a license effective through 2013 for geological exploration of the East-Schmidtovsky and Kaigansko-Vasyukansky oil fields under the Sakhalin-5 project, REGNUM reported.