Offshore staff
IRVING, Texas -- Phase one of the Sakhalin-1 project offshore Eastern Russia, led by Exxon Mobil Corp. subsidiary Exxon Neftegas Ltd., has reached its targeted peak production rate of 250,000 b/d of oil.
Phase one of the project consists of the Chayvo field onshore processing facility and a 225-km (140-mile) pipeline to transport crude west across Sakhalin Island and the Tatar Strait to the DeKastri terminal in the Russian Far East, where it is exported to international buyers. Natural gas production for the peak winter season in 2007 reached 3.92 MMcm/d (140 MMcf/d) and is being marketed to two domestic customers in the Khabarovsk Krai.
The Sakhalin-1 project includes offshore fields Chayvo, Odoptu, and Arkutun Dagi. The development is an important multiphase investment, ExxonMobil says, that addresses the challenge of meeting the world's growing energy demand.
Sakhalin-1 is one of the largest single foreign direct investments in Russia. Project benefits to Russia will include direct revenues to the Russia estimated at more than $50 billion over the life of the project, improvement of infrastructure, technology transfer, and the use of Russian suppliers for contracts, procurement, and workforce.
Commercial development brings with it a contribution of $100 million to the Sakhalin development fund over a five-year period, ExxonMobil says. The project will also bring production bonuses of $45 million. The Russian content of contracts awarded to date for the Sakhalin-1 project has exceeded $3.6 billion.
"ExxonMobil, through the operatorship of Exxon Neftegas Ltd., is pleased that the Sakhalin-1 Consortium achieved its production goal for peak crude oil operations in a timely manner," says Stuart McGill, senior vice president of Exxon Mobil Corp. "Achieving this production milestone is a significant example of how the energy industry and exporting nations can work together to provide needed energy supplies to global markets."
Exxon Neftegas Ltd. operates the Sakhalin-1 project with 30% interest. Participants include Rosneft, the Russian state-owned oil company, RN-Astra with 8.5% interest, Sakhalinmorneftegas-Shelf with 11.5% interest, Japan's Sakhalin Oil and Gas Development Co. Ltd. with 30% interest, and India's ONGC Videsh Ltd. with 20% interest.
2/14/2007
