BP PLC is to exit the Sakhalin-5 gas project, and Russian state oil company OAO Rosneft will continue working on it on its own, Interfax news agency reported Monday, citing Rosneft Chief Executive Eduard Khudainatov.

"BP is not interested in this project and we have made no secret of that…" Khudainatov was quoted as saying. "We are very interested. And we will not offer this project to anyone else."

Rosneft agreed in January with BP to a $16-billion share swap and development of three Arctic offshore licenses, but that deal was blocked by BP’s partners in the TNK-BP Ltd. joint venture. Rosneft later announced a global partnership with Exxon Mobil Corp.

Source: OilVoice