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Sakhalin oil ages 125

An important date for Sakhalin oil: 125 years ago exactly at the territory of present-day Okhinsky district geologic exploration was performed for the first time in Sakhalin oil and gas industry. Since that moment starts a rich history of Sakhalin hydrocarbons production.

Businesslike people knew about the presence of the “kerosene water”(this is the way local people called the liquid with kerosene smell) in some rivulets and gully pits already on the end of 19 century. In 1879, pursuant to instructions of their master, a merchant Alexey Ivanov, two clerks came here especially explore oil deposits and to stake claims. The very first exploration wells were drilled ten years later by Ivanov’s successor, a resigned marine officer from Saint-Petersburg Grigory Zotov. He bought four drilling rigs in Saint-Petersburg to start works and by the summer of 1889 organized an expedition to the north of Sakhalin, which was led by an experienced mining engineer Leopold Batsevich.

The history of hydrocarbons production at Sakhalin dates back to 1928, when on the 10th of August a state association of oil and gas industry was established as a trust of national importance named Sakhalinneft, now known as Sakhalinmorneftegaz, NC Rosneft subsidiary.

In more than eighty years Sakhalinmorneftegaz has risen from a small trust to a leading enterprise, using innovative methods of exploration. For instance, for the first time in the industry at Sakhalin fields the heat methods of influence on reservoirs were introduced on industrial scale, which gave the possibility to increase volumes of high-viscosity oil extraction. Also a gaslift oil extracting mechanism was developed, including the compressor one. As for the successful experience of Sakhalinmorneftegaz with controlled directional wells drilling under sea floor, it was later used during Sakhalin shelf projects development.

Since then the enterprise has produced about 130 mln tons of oil and more than 70 bln cubic meters of gas. At the moment the annual performance of Sakhalinmorneftegaz totals 1,2 mln tons of oil and more than 400 bln cubic meters of gas.

Sakhalinmorneftegaz is one of the oldest oil production enterprises. It performs operating functions at more than 30 development licenses of Sakhalin oil and gas deposits.

Notes for Editors:

The main projects of NC Rosneft in Sakhalin Island:

  • Sakhalin-1 is the first large-scale shelf project, performed in Russian Federation on terms of PSA (signed in 1996). Generally as part of Sakhalin-1 project 64 mln tons have been produced. By 2018 the oil production output will grow by 33% in reference to the present figures of the project. The project includes the exploration of three fields – Chaivo, Odopta and Arkutun-Dagi, situated on north-west shelf of Sakhalin Island in Okhotsk Sea water area. By means of extending Arkutun-Dagi field (Berkut platform) to the plateau the Sakhalin-1 output will exceed 10 mln tons of oil per year by 2018.

The shares of projects participants:
NC Rosneft – 20%
ExxonMobil – 30%
SODECO – 30%
ONGC Videsh Ltd. – 20%

  • The project at North-end of Chaivo licensed site. Model of the field production includes the employment of innovative drilling technologies. The works will be performed by means of unique unprecedented Yastreb drilling rig. It is planned to achieve project oil production efficiency by 2017, gas production efficiency – by 2027, the maximum efficiency will total about 1,6 mln tons of oil and 1,5 bln cubic meters of gas. Generally when realizing North Chaivo project the oil output will make about 14 mln tons and gas output will make about 12,6 bln cubic meters.
  • The prospective project “Far Eastern LNG” is jointly carried out by Rosneft and ExxonMobil. Plancommissioning is set at the end of 2018. The plant efficiency will make 5-10 mln tons of LNG per year. The deposits on Okhotsk Sea shelf, developed by Rosneft both individually and jointly with its “Sakhalin-1” partners will be the project’s resource base.

The amount of the Company’s investments in the Far Eastern Federal District increased in 2011-2013 from 19 bln rubles to 37 bln rubles, almost twice. By 2015 the Company plans to double the sum up to 79 bln rubles. The growth from 2012 to 2015 will make about 25-30% per year in comparable prices.

Rosneft
Information Division,
July 9, 2014