Year-Round Exports Begin From Sakhalin II

January 2009 Vol. 236 No. 1

Sakhalin Energy marked the start of year-round oil export from its new oil export terminal at Aniva Bay in the south of Sakhalin Island that forms part of the Prigorodnoye port. The first cargo is oil from Molikpaq, Sakhalin Energy’s first platform, but the Piltun-Astokhskoye-B platform will soon begin sending oil into the system. Gas condensate from the third platform in the Lunskoye gas field will boost production.

“This first cargo from Prigorodnoye is a key milestone in the commissioning of the facilities,” said Sakhalin Energy CEO Ian Craig. “The construction phase is nearing completion. We are now focused on commissioning of the full production system, with LNG processing starting in the next few weeks.”

Sakhalin Energy has produced more than 100 million barrels of Vityaz crude since 1999. Oil has been exported through an offshore facility which limited production to six months of the ice-free season. Year-round oil production has become possible due to the commissioning of the TransSakhalin Oil and Gas Pipeline system. The system connects three offshore platforms in the northeast with the new terminal and port in Aniva Bay.

The oil is exported through a tanker-loading unit which is installed three miles offshore in Aniva Bay and is connected to the export terminal by an undersea pipeline. In the winter of 2008-2009 oil will be delivered to customers by two specialized tankers, Governor Farkhutdinov and Sakhalin Island.