Sakhalin Energy:
A New Energy Source for the Asia Pacific
to be presented at ISOPEfs June Conference in Seoul
CUPERTINO, CALIFORNIA, USA, June 11, 2005 – ISOPE announces a special presentation on June 19 regarding Sakhalin energy as a new source for the Asia Pacific at the 15th International Offshore and Polar Engineering Conference & Exhibition – ISOPE-2005 – at the COEX Convention Center in Seoul, June 19-24, 2005.
David Meehan, project manager, Sakhalin Energy Investment Company (SEIC), Yuzhno-Sakhalinsk, Russia, will review the reserves of oil and gas in the Sakhalin Shelf, the status of Sakhalin oil and gas development, the present offshore installation, and the processing and converting of the gas to LNG for export to the Asian market. SEIC is led by Shell, whose partners are Mitsui and Mitsubishi, Japan.
Development of Sakhalin II will reportedly cost around $12 billion. It includes 2 huge concrete gravity-base structures (CGBS): the PA-B and Lun-A drilling and production platforms. Sakhalin II will become one of the worldfs largest LNG suppliers.
The Sakhalin Shelf, mainly north and east of the 87,100-square-km island, holds 196 Tcf of gas-in-place, 60,500 MMbbls of oil-in-place, and 94,300 MMboe-in-place on 9 blocks. It is what SEIC has already accomplished and has under construction, however, that gives compelling significance to these hydrocarbon-in-place figures.
· The Islandfs large LNG supply is the source closest to Asia, as well as to the United Statesf West Coast, which has never received Russian gas. As of last April, Sakhalin Energy had LNG sales to Japan, Shell Eastern Trading and KOGAS. Crude sales were to Japan, Korea, China, the Philippines, Thailand and the United States.
· The Piltun/Astokh Field has 13 producing wells, and its Phase 2 development calls for 2 offshore platforms: the PA-B, and the Astokh for year-round production.
· The Lunskoye Field has 18 to 23 planned production wells. The offshore platform under development, the Lun-A, can sustain a 20-year production plateau for 2 LNG trains.
· Both the PA-B and the Lun-A are concrete gravity-based structures (CGBS), and the first structures of their type in Russia; they are being built in Vostochny, near Vladivostok. The first CGBS is being installed this month in Sakhalin II offshore. The structuresf topsides are being constructed by Samsung Heavy Industries on Geoje Island in Korea.
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· An onshore processing facility is being built in the Islandfs northeast for the processing of gas and condensate from the Lunskoye Field prior to transportation to the LNG plant and oil export terminal. This facilityfs capacity is 51 MMcm of gas and 10,000 cm of condensate/oil per day.
· The first LNG plant in Russia is being built to receive, treat, process and liquefy gas from the Lunskoye Field and associated gas from the Piltun/Astokh Field. Also being built at Prigorodnoye on Aniva Bay is the oil export terminal, which will support the storage and export of 170,000 barrels of crude per day, along with 5,000 daily barrels of condensate from the LNG facility.
· Pipelines are under construction to transport product from the platforms, via the onshore processing facility, to the LNG plant and oil export terminal. Two onshore pipelines – 48-inch and 24-inch lines for gas and oil, respectively – will run a total length of 1,670 km. One gas and one oil offshore pipelines will travel 46 km and 74 km, respectively, from platforms to shore.
· SEIC has announced an infrastructure upgrade project covering roads, rail, bridges, culverts, port, laydown areas and airport. Expenditures are projected at $300 million.
Today, the worldfs LNG fleet numbers 177 ships of all sizes, a niche position compared to the global crude-oil tanker fleet of over 3,500 ships. Sakhalin Energy reminds, however, that 111 LNG ships are on order; that LNG ships larger than the current size are technically possible and, in fact, designs are available; and that size is limited only by port and terminal constraints.
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Among other highly anticipated papers presented at the 15th ISOPE Conference & Exhibitionfs 93 sessions with presenters from 47 countries are:
· ExxonMobil to Announce Cutting-Edge Technologies at ISOPE-2005 Conference in Seoul: A technology they have been developing for gas commercialization – Pressured LNG (PLNG). In essence, using ExxonMobil patented technologies for PLNG has the potential to lower the overall cost of moving gas from field to market by utilizing pressurized containment. And indeed its key component is the containment system. The PLNG pressure vessels are made of a newly developed high-strength, low-temperature (HSLT) steel along with new welding consumables and processes. PLNG and its delivery chain seek to optimize the trade-offs between the facilities and the shipping cost.
· Offshore Technology: A Heavy Industry Overview. Dr. Keh-Sik Min, Vice Chairman of Hyundai Heavy Industries Co., will discuss his companyfs dry dock-independent Ground-Build method for the construction of offshore LNG terminals and other large structures, which are impractical to build with current dry dock facilities.
· North Sea Pipelines: Pushing the Technology Front. Dr. Jan O. Berge, Chief Engineer, Statoil, will present special topics like f. ex Hot-Pipe \ advanced technology combined with low cost, high reliability and even tougher service conditions in a globally competing business framework.
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ISOPE‑2005 and associated programs are available on www.isope.org. Also see contact address: meetings@isope.org: Phone 1-650-254-1871.
The 15th International Offshore and Polar Engineering Conference & Exhibition ¾ ISOPE-2005 at COEX Convention Center in Seoul, June 19-24, 2005.
By ISOPE Staff