According to an insider within BP, speaking to the Interfax news agency, “We have a very restricted window for drilling, a whole lot of effort has been put into ensuring safety and environmental protection during operations on the island’s northeastern shelf.”

“Depth at the drilling site is more than one hundred metres, so special deepwater drilling equipment is needed. The alliance is very serious about drilling operations and other joint work and intends to observe all safety and environmental requirements.

“Rosneft and BP concluded the main drilling and support contracts several months ago. BP noted that significant development and infrastructure construction work can only be planned if exploration goes well, so a lot is riding on this first well,” added the source who admitted “the drilling contract is one of BP and Rosneft’s largest in the current drilling season”.

In a statement BP said, “BP is financing 100% of the spending involved in the geological studies and evaluation of the Kaigansko-Vasyukansky block. Drilling the first well will cost more than US$50 million [and] if commercial reserves are confirmed, BP and Rosneft will coordinate further financing strategy.”