Earlier this year BP purchased a 50% interest in oil firm TNK for $6.75 billion. BP has said it would bring all operations in Russia under the umbrella of the new company, TNK-BP, including its stake in the Sakhalin joint venture, if its partner Rosneft did not oppose the plan.
Rosneft and BP have two joint projects on the island's northeastern shelf, Sakhalin-4 and Sakhalin-5, in which BP owns 49 percent and fully finances the exploration, while Rosneft holds 51 percent. The two blocks of the Sakhalin-4 project are estimated to hold about 880 million barrels of oil and 540 billion cubic meters of gas. Preliminary reserves of the Sakhalin-5 project are estimated at 4.4 billion barrels of oil and 600 billion cubic meters of gas. Both projects will require several billion dollars in investment to build offshore platforms and infrastructure in very difficult weather conditions.
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