Lloyds List; BP shares in new Russian discovery: “The area off Sakhalin Island is becoming a key region for new oil and gas field developments where other oil majors are investing more than $20bn. ExxonMobil and Shell are involved in huge integrated oil and gas projects that will lead to new tanker routes in the reigon. If BP's discoveries in the Kaigansky-Vasuykansky licence are large enough for commercial development, this could be a third project off Sakhalin.”: Tuesday Oct 11, 2005

BRITISH oil major BP and Russian state oil company Rosneft have found another large oil field off eastern Russia.

Elvary Neftegas, a joint venture owned 51% by Rosneft and 49% by BP, made a second oil discovery on the Kaigansky-Vasuykansky licence off the northeast coast of Sakhalin Island.

The Udachnaya well, drilled by semi-submersible rig Transocean Legend, found three hydrocarbon zones and tested one of these at rates of 1,900 barrels of oil a day.

The well was drilled in 100 m of water 40 km off the coast.

It is the second discovery on the licence after the same rig found oil on the Pela Lache structure last year. This well found large quantities of oil 15 km east of Udachnaya.

The BP-Rosneft joint venture intends to drill more exploration wells next year.

It also operates the West and East Shmidt licences in the region and shot 3D seismic surveys from July to October this year.

The area off Sakhalin Island is becoming a key region for new oil and gas field developments where other oil majors are investing more than $20bn.

ExxonMobil and Shell are involved in huge integrated oil and gas projects that will lead to new tanker routes in the reigon.

If BP's discoveries in the Kaigansky-Vasuykansky licence are large enough for commercial development, this could be a third project off Sakhalin.

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