Project Profile
Location: Iltun-Astokhskoye and Lunskoye fields, located 13–16 kilometres offshore the northeastern coast of the Sakhalin Island, Russia
Reserves: 600 billion cubic metres of gas and 170 million tons of oil and condensate
Capacity: 9.6 million tonnes per year (2 liquefaction trains)
The Sakhalin-2 is the first project in Russia with offshore oil and gas producing platforms installed. The project infrastructure includes three offshore platforms, an onshore processing facility, 300 kilometres of offshore pipelines and 1,600km of onshore pipelines, an oil export terminal and a liquefied natural gas (LNG) plant.
The Sakhalin II project stipulates phased development of the Piltun-Astokhskoye and Lunskoye fields located 13–16 kilometres offshore the northeastern coast of the Sakhalin Island. Sakhalin II recoverable hydrocarbon reserves amount to over 600 billion cubic metres of gas and 170 million tons of oil and condensate. In October 2007, AEA Technology International Consultancy published the Sakhalin II project environmental report. The report states that the Health, Safety, Environmental and Social Action Plan (HSESAP) developed by Sakhalin Energy for Sakhalin II project generally meets Russian and international regulatory requirements related to environmental and process safety. In February 2009 the first Russian liquefied natural gas (LNG) plant was commissioned in Sakhalin.
Phase 1
Phase 1 was launched in 1996. It includes oil extraction in Astokhskaya area of the Piltun-Astokhskoye field. First oil was produced here in July 1999. Oil extraction is carried out by means of the Vityaz Production Complex comprised of the following elements:
— Piltun-Astokhskoye-A (PA-A)/Molikpaq platform for offshore oil production
— 2 kilometre submerged pipeline;
— single anchor leg mooring (SALM)
— Okha floating storage and offloading unit.
Phase 2
Phase 2 of the Sakhalin II project was launched in 2003. It envisages integrated development of the Piltun-Astokhskoye and Lunskoye fields. Phase 2 envisages:
— further development of the Astokhskoye block for year-round operation at the Piltun-Astokhskoye-A (PA-A) platform;
— commissioning of the Piltun-Astokhskoye-B (PA-B) platform in the Piltun block of the Piltun-Astokhskoye field;
— commissioning of the first Russian offshore gas production platform Lunskoye-A (LUN-A) at the Lunskoye field;
— hydrocarbons treatment at the onshore Processing Facility (OPF) to be linked with pipelines coming from all three offshore platforms;
— oil and gas transportation from the north to the south of the island through 800-kilometre onshore pipelines;
— LNG production at the first LNG plant in Russia located in the Prigorodnoye settlement, south of the Sakhalin Island;
— LNG and oil offloading to buyers from the LNG jetty and the oil export terminal in the Prigorodnoye settlement, south of the Sakhalin Island.
Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is the Sakhalin II project operator. The Sakhalin Energy shareholders are: Gazprom Sakhalin Holdings B.V. (a subsidiary Gazprom – 50% plus one share), Shell Sakhalin Holdings B.V. (a subsidiary of Royal Dutch Shell plc. – 27.5% minus one share), Mitsui Sakhalin Holdings B.V. (a subsidiary of Mitsui and Co., Ltd. – 12.5%) and Diamond Gas Sakhalin B.V. (a subsidiary of Mitsubishi Corporation – 10%).
The Sakhalin-2 LNG facility with the capacity to produce 9.6 mtpa is set to be expanded with the addition of a third LNG storage tank, a third liquefaction train and a new jetty. (September, 2016)
Operators:
Sakhalin Energy Investment Company Ltd.: Operator with 100% interest
Gazprom Sakhalin Holdings B.V. (a subsidiary Gazprom): 50% interest
Shell Sakhalin Holdings B.V. (a subsidiary of Royal Dutch Shell plc.): 27.5% interest
Mitsui Sakhalin Holdings B.V. (a subsidiary of Mitsui and Co., Ltd.): 12.5% interest
Diamond Gas Sakhalin B.V. (a subsidiary of Mitsubishi Corporation): 10% interest
Contractors:
Petrofac: Lump-sum engineering, procurement and offshore fabrication component
Wood Group: Technical support services (TSS)
AEA Technology International Consultancy: Sakhalin II project environmental report
Ampelmann: To deliver the winterized version of the motion compensated gangway system which will allow the transfer of work crew at temperatures of up to -28 degrees. (April 2016)
GE Oil & Gas: Supply a number of turbines
LQT Industries, LLC: Contract to build and commission a subarctic aluminum accommodation facility to be used by a global energy company on a drilling platform off the coast of Sakhalin Island, Russia. The facility consists of ten aluminum modular units made up of living quarters, recreation rooms, and utility rooms to accommodate ninety-six personnel on a drilling platform. The exterior stairs and walkways included with the facility are completely enclosed with aluminum barriers to protect the occupants from the harsh weather environments the subarctic region produces. The facility was designed and built to comply with Russian regulatory groups, including certifications from GOST (Russian State Union Standard) and IPEIG. The construction of the facility was performed at LQT’s facility in Abbeville, LA and then disassembled and transported by truck to the Port of Houston where it was shipped to Sakhalin Island, Russia. LQT deployed eight employees to Russia to provide management support for the assembly and commissioning of the facility where they received three different awards for outstanding safety awareness and safe work practices.
Sovcomflot: The agreement between Sovcomflot and Sakhalin Energy involves the operation of 4 vessels for 20 years. The order is for one ice-breaking supply vessel (IBSV) and three emergency response and rescue vessels (ERRVs). (July, 2016)
- Purchased two platform supply vessels, meaning all three platform supply vessels used in the Sakhalin-2 project are operated by SCF Group. (September, 2016)
NYK Line and Sovcomflot (Partnership): Long-term time charter contracts with Sakhalin Energy for the transport of hydrocarbons from the port of Prigorodnoye to Asia-Pacific countries. (September, 2016)
- Operate two LNG tankers, the Grand Aniva and Grand Elena.
- Operate three Aframax shuttle tanker, the Zaliv Aniva, Sakhalin Island and Governor Farkhutdinov.
KCA Deutag: Drilling services contract.