Rosneft-BP JV Makes Discovery in its First Sakhalin Well

CJSC "Elvary Neftegas" (Rosneft-BP joint venture) has completed the drilling of its first exploration well under the Kaigansky–Vasukansky exploration license in the south of the Sakhalin V area, offshore Sakhalin Island.

The joint venture, 51 percent Rosneft and 49 percent BP, is pleased to announce that the well encountered significant volumes of oil and gas in a number of high quality sandstone reservoirs.

The well was drilled on the Pela Lache prospect, which is farther north, farther offshore (49 kilometers), and in deeper water (114 meters) than any previous well offshore Sakhalin. This well marks the first drilling activity in the modern stage of Sakhalin oil and gas exploration.

The technical and operational aspects of the program were conducted by a joint team of Rosneft and BP specialists. The close working relationship that has evolved over the years between Rosneft and BP formed a solid foundation to support a successful joint operatorship of the project.

The objectives for this operational season have been met and the rig has completed drilling activities. Rosneft-BP is suspending the well and will return to it in the future to test and gather additional data.

The results of Pela Lache -1 represent a positive first step towards opening a new area for exploration and subsequent development offshore northern Sakhalin.