BP joins Sakhalin oil search

BP, the energy giant, has joined the hunt for oil at Sakhalin, the island off the east coast of Russia where giants Shell and Exxon Mobil are already operating. Though ice-bound for much of the year, Sakhalin is a major oil province with five huge discoveries over three decades.

BP, in alliance with Russian group Rosneft, has won a five-year exploration licence north of Sakhalin. Initial seismic work will be followed by drilling, possibly in 2004. BP hopes its experience in Alaska will help it cope with the conditions. It owns 49% of the alliance.