The Sakhalin-1 Project is an oil and gas development on the northeast shelf of Sakhalin Island. It was declared commercial in October, 2001. The Project area is comprised of the Chayvo, Odoptu and Arkutun-Dagi fields. Total recoverable reserves are estimated to be 2.3 billion barrels of oil (307 million tons) and 17.1 trillion cubic feet of natural gas (485 billion cubic meters). (Project Overview)
Press Releases & Project News
- 7 Feb 2008: SAKHALIN-1 CONSORTIUM ANNOUNCES DRILLING OF WORLD'S LONGEST EXTENDED-REACH WELL - SAKHALIN-1 PROJECT BREAKS ITS 2007 WORLD DRILLING RECORD
- 5 Dec 2007: Sakhalin-1 Consortium Achieves Energy Production Milestone of 100 million barrels
- 22 Oct 2007: Sakhalin-1 Consortium Provides Portable Housing for Earthquake Victims
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Exxon Neftegas Limited, an affiliate of Exxon Mobil Corporation, is the operator of the Sakhalin-1 Project. Other participants in the Sakhalin-1 Consortium are: two Russian companies, Sakhalinmorneftegas-Shelf and RN-Astra; the Japanese company Sakhalin Oil and Gas Development Co., Ltd.; and India's ONGC Videsh Ltd.
The Sakhalin-1 Project is one of the most ambitious, world-scale projects developed by international oil and gas industry to date, and represents one of the largest single foreign direct investments in Russia. Project benefits to Russia include direct revenues to the Russian state estimated at over US$ 50 billion over the life of the Project, major infrastructure improvements, technology transfer, the employment of Russian citizens, and the use of Russian suppliers for contracts and procurement. Commercial development brings with it a contribution of US$ 100 million to the Sakhalin development fund over a five-year period. The Project will also bring production bonuses of US$ 45 million. The Russian content of contracts awarded to date for the Sakhalin-1 Project is over US$ 4.4 billion, or about two-thirds of the total.
The Sakhalin-1 Project has been recognized for its notable industry leading accomplishments, and serves as an example of a successful joint national/foreign investment in Russia. These achievements include the on-schedule commencement of first production, timely completion of the export pipeline and terminal and the start-up of the crude export operations, commissioning of the Onshore Processing Facility ahead of schedule, successful ramp-up of production to design levels of 250,000 barrels (34,000 metric tons) of oil per day and the drilling of record-breaking extended reach drilling (ERD) wells. The Project now supplies crude to international markets and natural gas to the Russian Far East to the greater benefit of the Sakhalin-1 Consortium and the Russian state.