OREANDA-NEWS. On November 22 Rosneft and BP signed Shareholder and operating agreements for joint activity on the East-Schmidt (Sakhalin-5) and the West-Schmidt (Sakhalin-4) licence blocks.

Projects are implemented under the effective legal framework between Rosneft (51%) and BP (49%). Operational management of the projects will be conducted by CJSC Elvary Neftegas established in 2003 for exploration on the Kaigansko-Vasuykansky licence block (Sakhalin-5).

It is planned that exploration activities on both blocks including drilling of 6 wells will be financed by BP until commerciality is confirmed; following commercial discovery the expenses will be reimbursed from Rosneft’s share of production.