Sakhalin- oil and gas project, link to NS Energy:
The oil and gas from the Chayvo, Odoptu and Arkutun-Dagi fields is transported through a pipeline to the Chayvo onshore processing facility. The capacity of the processing facility is approximately 250,000 barrels of oil and 800 million cubic feet (Mcf) of gas a day.
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Background
The geography and geo-politics:
Oil and natural gas:
In 1996, two large consortia, Sakhalin-I and Sakhalin-II, signed contracts to explore for oil and gas off the northeast coast of the island. The two consortia were estimated[by whom?] to spend a combined US$21 billion on the two projects; costs had almost doubled to $37 billion as of September 2006, triggering Russian governmental opposition. The cost will include an estimated US$1 billion to upgrade the island's infrastructure: roads, bridges, waste management sites, airports, railways, communications systems, and ports. In addition, Sakhalin-III-through-VI are in various early stages of development.
The Sakhalin I project, managed by Exxon Neftegas Limited (ENL), completed a production-sharing agreement (PSA) between the Sakhalin I consortium, the Russian Federation, and the Sakhalin government. Russia is in the process of building a 140-mile pipeline across the Tatar Strait from Sakhalin Island to De-Kastri terminal on the Russian mainland. From De-Kastri, the resource will be loaded onto tankers for transport to East Asian markets, namely Japan, South Korea and China.
A second consortium, Sakhalin Energy Investment Company Ltd (Sakhalin Energy), is managing the Sakhalin II project. It has completed the first production-sharing agreement (PSA) with the Russian Federation. Sakhalin Energy will build two 800-km pipelines running from the northeast of the island to Prigorodnoye (Prigorodnoe) in Aniva Bay at the southern end
The consortium will also build, at Prigorodnoye, the first liquefied natural gas (LNG) plant to be built in Russia. The oil and gas are also bound for East Asian markets.Sakhalin-1, wiki.
The Sakhalin-I (Russian: Сахалин-1) project, a sister project to Sakhalin-II, is a consortium for production of oil and gas on Sakhalin Island and immediately offshore. It operates three fields in the Okhotsk Sea: Chayvo, Odoptu and Arkutun-Dagi.
In 1996, the consortium completed a production-sharing agreement between the Sakhalin-I consortium, the Russian Federation and the Sakhalin government. The consortium was managed and operated by Exxon Neftegas Limited (ENL), a unit of ExxonMobil,[1] until Exxon's withdrawal in March 2022 following the 2022 Russian Invasion of Ukraine.[2] The Russian government froze Exxon's investment in August 2022 and ordered its transfer to a newly created Russian company the following October.
Sakhalin-II, wiki.
The Sakhalin-2 (Russian: Сахалин-2) project is an oil and gas development in Sakhalin Island, Russia. It includes development of the Piltun-Astokhskoye oil field and the Lunskoye natural gas field offshore Sakhalin Island in the Okhotsk Sea, and associated infrastructure onshore. The project is managed and operated by Sakhalin Energy Investment Company Ltd. (Sakhalin Energy).
Sakhalin-2 includes the first liquefied natural gas plant in Russia. The development is situated in areas previously little touched by human activity, causing various groups to criticize the development activities and the impact they have on the local environment.
The original consortium, was a joint venture between Marathon Oil, McDermott, and Mitsubishi. They won a tender from the Russian Government in 1992. Later that year Royal Dutch Shell joined the joint venture. In 1994 the JV incorporated in Bermuda to form Sakhalin Energy Investment Company Ltd. Sakhalin Energy, led by Marathon, negotiated the first PSA directly with representatives of the Russian government. The Russian Party maintained project planning and budget approval. The initial investment decision was to proceed with the oil field development led by Marathon. McDermott sold its share to the other partners in 1997 and Marathon traded its shares to Shell for an interest in other properties (the BP operated Foinaven field, near the Shetland Islands, and an eight block area in the Gulf of Mexico—including the Ursa field) in 2000.
The decision to proceed with the gas project investment was made in 2003. The expected budget increased dramatically by 2005–2006. The pipeline portion of the gas project was heavily criticized due to environmental issues. Legal proceeding on perceived violation of the Russian environmental regulations were initiated.
In the result, The Russian government ordered to terminate the project in September 2006.
Under legal and political pressure, the consortium was forced to sell a majority stake to Gazprom. On 21 December, Gazprom took control over a 50%-plus-one-share stake in the project by signing an agreement with Royal Dutch Shell. Russian President Vladimir Putin attended the signing ceremony in Moscow and indicated that environmental issues had been resolved.
The LNG plant was inaugurated on 18 February 2009. The first cargo was loaded to the LNG carrier Grand Aniva at the end of March 2009.
After the Russian invasion of Ukraine in February 2022, Shell said that it would exit Sakhalin-2 and other ventures in Russia. On 30 June 2022, Russian President Vladimir Putin signed a decree ordering the transfer of the Sakhalin-2 project to a new domestic operator. Foreign investors will be required to apply to retain their existing shares in the new Russian company within a month. The Russian government will then decide whether to allow foreign shareholders to keep their stake. If they are rejected, the government will sell the foreign shareholder’s stake and keep the proceeds in the shareholder’s special account.
Sakhalin has been mentioned often on the blog: search Sakhalin.
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