BP, Rosneft Relinquish License at Joint Sakhalin Project

According to a report by Dow Jones Newswires, BP and Rosneft have relinquished a license for the East Shmidt block at the two oil majors' joint Sakhalin-5 development project in Russia.

Both companies have deemed further exploration at East Shmidt uneconomical, after conducting more than 4,400 kilometers of seismic study, the report said.

"Based on collected data and analysis, the decision was taken not to proceed with exploration and to relinquish the East Shmidt license," a BP spokesman confirmed to Dow Jones.

However, the partners are still exploring the Kaigansky-Vasuykansky blocks, offshore Sakhalin, which already contain several discoveries, and seismic data collected in 2009 is currently under review, the report noted.