Sakhalin-1 Announces First Major Contract Awards for De-Kastri Terminal Construction
Khabarovsk, December, 2003 - Exxon Neftegas Limited (ENL), operator for the Sakhalin-1 Consortium, announced that it has awarded the first major on-site contracts for construction of the DeKastri Crude Oil Terminal. Engineering, procurement and construction contracts for DeKastri site earthwork and oil storage tanks have been awarded to the Enka-Technostroyexport JV and the JSC Trust Koksokhimmontazh.Under the contracts, Enka-Technostroyexport, a Russia-Turkey JV, will perform DeKastri Terminal site preparation work, including design, clearing, grading, compacting and finishing grade work. Koksokhimmontazh, a 100% Russian company, will construct two 100,000 cubic meter (650,000 bbl) crude oil tanks to be used to store Sakhalin-1 crude oil at the DeKastri Terminal location prior to tanker loading and shipment.
Construction of the Sakhalin-1 crude oil export terminal is part of Phase 1 project development activities. The terminal, located in the Khabarovsk Krai on the mainland near existing port facilities, will provide storage and a single point mooring tanker loading facility that will load crude oil onto a dedicated fleet of ice-strengthened tankers for year-round export to world markets. Tanker charter contracts for Sakhalin-1 crude oil transportation were recently awarded to Primorsk Shipping Corporation (PRISCO) and Sovcomflot.
The value of Sakhalin-1 Project contracts awarded to Russian companies to-date is more than US$2.3 billion. Russian companies have won over 85% of all contracts awarded by Sakhalin-1 Consortium in the first half of 2003.
The Sakhalin-1 Project, the largest single foreign direct investment project in Russia, includes the Chayvo, Odoptu and Arkutun Dagi offshore fields. It has potential recoverable resources of approximately 2.3 billion barrels (307 million tons) of oil and 17 trillion cubic feet (485 billion cubic meters) of gas. Capital investment for full field development is estimated at over US$12 billion. Project Phase 1 activities are under way. More than US$1.7 billion has been spent on project activities to date.
In addition to ENL (30 % interest, operator), Sakhalin-1 Consortium members are the Japanese company Sakhalin Oil and Gas Development Co., Ltd. (30 %), the Indian company ONGC Videsh Ltd. (20 %) and two Russian companies, Sakhalinmorneftegas-Shelf (11.5 %) and RN-Astra (8.5 %).
For more information on the Sakhalin-1 Project, please contact Glenn Waller (Moscow 095 564-8950) or Michael Allen (Yuzhno-Sakhalinsk 4242 66 88 12) or logon to the Sakhalin-1 website (www.sakhalin1.ru or www.sakhalin1.com)