Sakhalin-1 Consortium Achieves Energy Production Milestone of 100 million barrels
Yuzhno-Sakhalinsk, Russia, December 5, 2007 -- The Sakhalin-1 Consortium, operated by Exxon Neftegas Limited (ENL), a subsidiary of Exxon Mobil Corporation, announced today that it has produced 100 million barrels of crude oil from the Chayvo field on the northeast shelf of Sakhalin Island.“We are proud of the project's safe and environmentally responsible production operations, which deliver revenues to the Russian state and Sakhalin-1 co-venturers," said James Taylor, ENL Executive Vice President.
Sakhalin-1 has applied a number of advanced technologies to meet the challenges of producing energy supplies in arctic offshore conditions. The use by ExxonMobil of state-of-the-art extended reach drilling technology has reduced the capital and operating costs of the offshore structures and minimized the near-shore environmental impact.
With approximately 70 million hours worked, the project has demonstrated world-class safety performance that is nine times better than that of the global oil and gas construction industry.
Sakhalin-1 will bring direct revenues to the Russian state at over US$ 50 billion in taxes, royalty payments and state share of oil over the life of the Project, along with other significant benefits.
The Project started production in October 2005 and has been producing at peak design levels of 250 thousand barrels a day since February 2007.
Information for Editors: Sakhalin-1 develops the Chayvo, Odoptu, and Arkutun-Dagi field blocks, which contain potential recoverable reserves of approximately 307 million tons of oil (2.3 billion barrels) and 485 billion cubic meters of gas (17 trillion cubic feet).
The Sakhalin-1 Consortium is an example of successful commercial cooperation between Exxon Neftegas Limited (operator, 30 percent interest), affiliates of the Russian state company Rosneft RN-Astra (8.5 percent) and Sakhalinmorneftegas-Shelf (11.5 percent), the Japanese company Sakhalin Oil and Gas Development Co., Ltd. (30 percent) and Indian state-owned oil company ONGC Videsh Ltd. (20 percent).
For further information, please contact Margarita Tsoy, Exxon Neftegas Limited Public and Government Affairs Manager in Yuzhno-Sakhalinsk at (4242) 677-000. See also our website at www.sakhalin-1.com.