Rosneft, Gazprom May Share Sakhalin-3

Rosneft may share control of the offshore Sakhalin-3 oil and natural gas development with Gazprom, Interfax reported Friday.

Both companies have expressed interest in three unclaimed blocks at Sakhalin-3, Interfax said. Rosneft chief executive Sergei Bogdanchikov is ready to discuss cooperating on the project with Gazprom, the agency reported.

Developing offshore projects will take 12 to 14 years from the time of the license sale and cost from $15 billion to $20 billion, Bogdanchikov said, Interfax reported

Rosneft plans to spend as much as 600 billion rubles ($24.4 billion) through 2020 to boost oil production in eastern Siberia, Bogdanchikov told the Krasnoyarsk Economic Forum on Friday.

The company will spend 50 billion rubles this year and 600 billion rubles over the 12-year period as it seeks to raise annual oil output to 170 million tons by 2020, Bogdanchikov said.