Up-to-date Review of
World’s Largest Integrated Oil and Gas Project:
The Russian Far East’s Sakhalin Island
Cupertino, California, May 27―The 16th International Offshore and Polar Engineering Conference (ISOPE-2006), to be held in San Francisco May 28-June 2, features a presentation by Sakhalin Energy Investment Co. regarding its oil and gas developmental activity in the Russian Far East.
At the May 29 opening session, two Sakhalin Energy executives ― David Meehan, Director, and Peter Kerr, Facility Services Manager ― will provide:
· an overview of Phase 1 production, and
· a review of current progress of the entire Phase 2 project, including the recent installation of two concrete gravity-base structures and the world-record 22,000-ton Lunskoye topside jack-up.
The Piltun Astokhskoye and Lunskoye fields off Sakhalin Island’s northeastern coast represent a phased, integrated oil and gas development widely regarded as the world’s largest ever. Phase 1, which began seasonal production in 1999, was Russia’s first offshore oil development; Phase 2, under construction, includes the installation of Russia’s first-ever LNG Plant.
The project involves a huge reserve:
· Offshore deposits of oil and gas are comparable to the oil and gas reserves remaining in the North Sea or Gulf of Mexico.
· Sakhalin II oil reserves equate over six months of current Russian crude oil exports (5 million barrels/day).
· Sakhalin II gas reserves equal three and one-half years of Russian gas exports to Europe.
· The two-train LNG plant will have a capacity of 9.6 million tons/year. The plant is still under construction, but most of the future LNG capacity is already sold under long-term contracts to customers that include Japan, Korea and Northern America.
The Sakhalin project faces frontier, sub-Arctic conditions. Climatic challenges include a range in temperature from +25° to –40°F; an offshore temperature that can drop to –60°F with wind chill; offshore ice from December till June off the north of the Island; extreme waves; and frequent fog in spring and summer.
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Contact: Jin S. Chung
ISOPE Executive Director & Conference Chair
