Sakhalin II Project: Key Milestones
The oil rim well was completed in at the Lunskoye field.
The LNG plant reached full production capacity (9.6 mln tonnes per year).
The two hundredth LNG cargo was delivered from Prigorodnoye Complex to its destination.
To debottleneck the existing wells’ operation and improve the future Molikpaq wells’ lay out and trajectories, the first-ever 4D seismic in Russia was successfully carried out in the Astokh area to study changes occurring in the field after 12 years of oil production.
Booster Station 2 was set into operation.
the Road Safety Partnership Programme and Sakhalin Energy’s internal road safety programme were highly praised by the International Energy Institute and honoured with an award as the best international project in terms of safety. They also won recognition from the RF Government.
Delivered the hundredth LNG shipment from Prigorodnoye Complex (symbolically, this shipment was carried by the Grand Aniva, the same LNG carrier that shipped the first LNG cargo from Sakhalin).
Sakhalin Energy surpassed its planned estimates for exports of crude oil by 11% and LNG by 47%.
Sakhalin Energy received the Shell CEO safety award for the third time.
Sakhalin Energy joined the United Nations Global Compact, a strategic initiative to promote corporate social responsibility.
The global community recognised Sakhalin Energy’s achievements in environmental safety. The Sakhalin-2 Oil Export Terminal won the Environmental Safety award in the 2nd International Oil Terminal contest.
Company signed a longterm charter contract with Primorsk Shipping Corporation for a third tanker Zaliv Aniva. The Aframax class oil tankers, chartered by Sakhalin Energy, each with a gross deadweight over 100,000 are rated Ice 2 (ICE-1C as per international classification).
Sakhalin Energy celebrated its 10th anniversary of supplying Sakhalin-2 project oil to the Asia-Pacific market.
Molikpaq achieved an important HSE milestone – five years of operating without a lost time incident.
The LNG plant received an innovative project award from the Japanese Ministry of Land Use, Infrastructure, Transport, and Tourism.
: LNG train 2 (of the LNG plant) started operations.
Sakhalin Energy received an award for the best innovative offshore project from the Board of Directors of the Offshore Technology Conference, a world forum for oil and gas technologies.
The operation and maintenance services of the TransSakhalin pipeline system were handed over to Sakhalin Energy’s contractor, Gazprom transgaz Tomsk (GTT).
Sakhalin Energy delivered the first LNG cargo from the LNG plant to two Japanese companies, Tokyo Gas and Tokyo Electric.
LNG plant commissioning ceremony.
Commencement of natural gas production from the
Export of first crude oil cargo from the oil export terminal at Prigorodnoye designed for year-round operations.
Sakhalin Energy wins the Environmental Project of the Year award.
The Molikpaq platform transitioned to year-round operational status. The filling of the TransSakhalin pipeline system started.
The Japan Bank for International Cooperation and an international consortium of commercial banks commit to provide a USD 5.3 billion loan to Sakhalin Energy in a major project finance transaction in the global oil and gas industry.
Russia’s Government establishes by a special resolution the Prigorodnoye industrial sea port with LNG and crude oil export terminals.
Installation of the
On April 18, the shareholders of Sakhalin Energy and Gazprom sign a sale and purchase agreement regarding shares in Sakhalin Energy which resulted in the following shareholding structure: Gazprom (50% plus one share), Royal Dutch Shell plc. (27.5% minus one share), Mitsui & Co., Ltd. (12.5%), Mitsubishi Corporation (10%). Sakhalin Energy remains the operator of the Sakhalin II project which will continue to be carried out under a production sharing agreement signed by Russia’s Government and Sakhalin Energy in 1994.
Gazprom, Shell, Mitsui and Mitsubishi sign a protocol to bring Gazprom into Sakhalin Energy as a leading shareholder.
Sakhalin Energy completes the construction of the offshore pipeline.
Sakhalin Energy completes installation of Molikpaq Tie In modules, allowing year round oil and gas production and exports from Molikpaq to occur.
Sakhalin Energy completes engineering and construction works for the
Sakhalin Energy enters into an LNG sales agreement with Hiroshima Gas Company Ltd.
Sakhalin Energy enters into an LNG sales agreement with Korea Gas Corporation (KOGAS).
Sakhalin Energy signs heads of agreement with Tohoku Electric Power Company Inc. for LNG sales.
Sakhalin Energy signs heads of agreement with Korea Gas Corporation (KOGAS) for LNG sales.
Sakhalin Energy delivers the first crude oil cargo to Tohoku Electric Power in Japan.
Sakhalin Energy enters into a long-term charter of two new-built LNG ships with a consortium consisting of Nippon Yusen Kabushiki Kaisha (NYK) and OAO Sovkomflot and enters into a long-term charter of one new-built LNG ship with another Russian-Japanese consortium consisting of Mitsui O.S.K. Lines (MOL), Kawasaki Kisen Kaisha (K Line) and OAO Primorsk Shipping Corporation. These deals represent Russia’s first entry into the LNG shipping business.
Sakhalin Energy enters into a pioneering deal to supply LNG to Shell Eastern Trading Ltd. for North American markets. The deal represents the first sales of Russian natural gas to North America.
Sakhalin Energy signs an LNG sale and purchase agreement with Kyushu Electric.
Sakhalin Energy signs heads of agreement, a major LNG sales deal, with Toho Gas.
The First Weld event—official commencement of the TransSakhalin pipeline system construction.
Phase 2 Feasibility Study approved by the GlavGosExpertiza.
Sakhalin Energy signs heads of agreement with Kyushu Electric.
Phase 2 Feasibility Study approved by the Russian State Environmental Review body.
Sakhalin Energy signs heads of agreement for LNG sales with Tokyo Gas.
Full development of Piltun-Astokhskoye and Lunskoye fields starts.
Sakhalin Energy signs heads of agreement for LNG sales with Tokyo Electric.
Phase 2 Feasibility Study developed by Sakhalin Energy and submitted for review to the Russian State Environmental Review body.
Phase 2 Feasibility Study developed by Sakhalin Energy and submitted for review to GlavGosExpertiza.
Sakhalin Energy publishes the Preliminary Phase 2 Environmental Impact Assessment and conducts local public hearings.
Sakhalin Energy launches a tender for a contractor for the proposed LNG plant and oil export facilities.
Phase 2 Development Plan approved by the Supervisory Board.
The shareholding structure of Sakhalin Energy becomes as follows: Royal Dutch Shell plc. (55%), Mitsui & Co., Ltd. (25%) and Mitsubishi Corporation (20%).
Sakhalin Energy moves its corporate office to Yuzhno-Sakhalinsk.
Export of first crude oil cargo.
First production at the Piltun-Astokhskoye field—Russia’s first offshore oil production.
Russia adopts changes to laws following enactment of the PSA law.
Molikpaq production platform installed at the Piltun-Astokhskoye field, following refurbishment in South Korea.
Phase 1 Feasibility Study approved by the Russian State Environmental Review body.
Phase 1 Feasibility Study approved by the GlavGosExpertiza.
Phase 1 Feasibility Study submitted for review to the Russian State Environmental Review body.
Phase 1 Feasibility Study submitted for review to GlavGosExpertiza (Russian State Expert body).
Phase 1 Development Plan approved by the Supervisory Board.
McDermott sells its shareholding in Sakhalin Energy to other shareholders, resulting in the following shareholding structure: Marathon (37.5%), Mitsui and Shell (25% each) and Diamond Gas—Mitsubishi (12.5%).
The Russian Party (Russia’s Government and the Sakhalin Oblast Administration) approves Phase 1 Development Plan.
Appraisal work begins at the Piltun-Astokhskoye and Lunskoye fields.
The Russian Federation issues licences to Sakhalin Energy for the Piltun-Astokhskoye and Lunskoye fields.
Enactment of the Russian Federal Law on Production Sharing Agreements.
A production sharing agreement with respect to Piltun-Astokhskoye and Lunskoye fields is signed on June 22 by the Russian Federation, the Sakhalin Oblast Administration and Sakhalin Energy.
MMMMS Consortium establishes Sakhalin Energy Investment Company Ltd. (Sakhalin Energy).
Approval of the feasibility studies by the Russian Federation.
Mitsubishi joins the Consortium—now the MMMMS Consortium. The feasibility study is submitted for review to the regulatory bodies of the Russian Federation.
Shell joins the MMM consortium (renamed MMMS).
MMM starts to conduct the feasibility study.
A feasibility study agreement for the evaluation of Piltun-Astokhskoye and Lunskoye fields is signed by the Marathon, McDermott and Mitsui (MMM) Consortium and the Russian Federation.
The USSR announces an international tender for the right to conduct a feasibility study for the development of the Piltun-Astokhskoye and Lunskoye licence blocks, a project which later becomes known as Sakhalin II.
Discovery of the offshore Piltun-Astokhskoye field in the north east of Sakhalin.
Discovery of the offshore Lunskoye field in the north east of Sakhalin.