The oil giant BP is in talks with the Yukos Oil Company of Russia to buy a stake in an Eastern Siberian oil exploration unit as part of efforts to expand in the world's second largest oil producing nation.
BP's “exploratory” discussions with Yukos, which is the second largest of the Russian oil producers, about the Yurubchensky oil field are among a number of projects BP is considering in the Russian oil and gas sector, a spokesman said. No agreements have been reached over the project.
Oil companies including BP and TotalFinaElf of France are expanding their presence in Russia while energy projects in the Middle East face delays. In April, BP spent $375 million to increase its stake in Russian oil company Sidanco.
The Yurubchensky field has recoverable oil reserves of three hundred million metric tons, which is about 2.2 billion barrels, or enough to fuel France for three years, and is the largest undeveloped oil and gas deposit in Eastern Siberia, Yukos has said.