First Russian Offshore Project Sakhalin-1 Celebrates Its 25th Anniversary

25 years ago the Sakhalin-1 Production Sharing Agreement was signed between the Government of the Russian Federation, Sakhalin Regional Administration and international consortium. The consortium includes Rosneft, ExxonMobil (USA), ONGC Videsh Ltd. (India), and SODECO (Japan). Sakhalin-1 is one of the Russian major projects with foreign direct investment, being an example of the use of advanced technologies for development of hydrocarbons in sub-Arctic settings. Years of the Sakhalin-1 project implementation showed outstanding operational indicators.

The cumulative output of oil and condensate has exceeded 125 million tonnes. Over 28 bcm of natural gas has been supplied to Far East consumers.

Potential recoverable reserves of the project account for 307 million tonnes of oil and 485 bcm of natural gas.

Sakhalin-1 is a project of technological records. Nine of ten longest wells in the world have been drilled on its fields. The current world record belongs to the well drilled from the Orlan platform, which is 15,000 metres long, with a vertical deviation of 14,129 metres. The upper part of the Berkut platform, weighing about 42,000 tonnes, is another record holder as the heaviest topside built on the high seas by thrust method. Total weight of the Berkut platform exceeds 200,000 tonnes.

The crude from the project is transferred to Chayvo onshore treatment facilities on Sakhalin Island and then is pumped through a pipeline to De-Kastri terminal and offloaded to consumers by tanker fleet. During the project over 1,200 tankers of the high-profile Sokol crude have been offloaded.

The implementation of the Sakhalin-1 project ensures balanced income to the Russian Federation budget. By now, it has provided over 1.2 trillion roubles including over 500 billion roubles to the Sakhalin Regional budget.

Note for Editors:

he Sakhalin-1 project includes the development of three offshore fields, Chayvo, Odoptu and Arkutun-Dagi, located on the north-eastern shelf of Sakhalin Island. The first field, Chayvo, was launched in 2005; Odoptu in 2010, and Arkutun-Dagi in January 2005.

The Chayvo field is developed from both onshore and offshore facilities. The north-western part of the main Chayvo field oil reservoir was developed using the Yastreb onshore drilling rig. Oil and gas production on Chayvo is also carried out from the Orlan offshore platform. It is used for the development of south-western part of the main maintenance site of the Chayvo field.

The Odoptu field is located approximately 70 kilometres north from the Chayvo drilling site. Drilling was started in May 2009 after the relocation of the Yastreb drilling rig from the Chayvo field and its modernization.

The Arkutun-Dagi oil and gas field is located approximately 25 kilometres from north-eastern shore of the Sakhalin Island, to the east from the Chayvo field. Development of this field is carried out using the new Berkut offshore drilling and production platform.

Products from all drilling sites are transferred to the Chayvo onshore treatment facility. The facility was initially designed for the treatment of up to 34,000 tonnes of oil per day, but due to successful engineering solutions and installation of additional equipment the day treatment capacity reached 41,000 tonnes in 2019.

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June 30, 2020