Sakhalin Energy Investment Company Ltd.

News and events

Contacts

Head office in Yuzhno-Sakhalinsk

35 Dzerzhinskogo St.
Yuzhno-Sakhalinsk, 693020
Russia

+7 4242 66 2000
+7 4242 66 2801 fax


Moscow office

Novinskiy Blvd., 31
Moscow, 123242
Russia

+7 495 956 1750
+7 495 956 1760 fax


ask@sakhalinenergy.ru

www.sakhalinenergy.ru/en/

Deputy Head of Department for Corporate and External Relations, Head of Directorate for Government, Shareholders and Public Relations

Tatiana Luzan

Deputy Head of Department for Corporate and External Relations, Head of Directorate for Government, Shareholders and Public Relations

(+7 4242) 66-20-45

ea@sakhalinenergy.ru

Management

Roman Dashkov was appointed as Chief Executive Officer of Sakhalin Energy in 2013.

He has degrees from the Gubkin Russian State University of Oil and Gas and the Plekhanov Russian University of Economics.

Roman Dashkov has extensive experience in engineering, design and management gained at a number of subsidiaries (Orenburggazprom and Yamburggazdobycha) and the Gas, Gas Condensate and Oil Production Department of Gazprom. Prior to joining Sakhalin Energy, he was Deputy Director General for Prospective Development at Gazprom Dobycha Nadym.

Company overview

Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is an oil and gas company that develops the Piltun-Astokhskoye and Lunskoye fields on the north-eastern shelf off Sakhalin Island. It is engaged in oil and natural gas production, transportation, processing and marketing.

The company operates under the Production Sharing Agreement (PSA) signed by Sakhalin Energy and the Russian Federation (represented by the Government of the Russian Federation and the Sakhalin Region Administration) in June 1994. The document was the first PSA in Russian history.

The shareholders of Sakhalin Energy are as follows:

Prigorodnoye production facility of Sakhalin II project

Prigorodnoye production facility of Sakhalin II project

The company’s facilities include:

  • three offshore oil and gas production platforms: Piltun-Astokhskaya-A (PA-A / Molikpaq), Piltun-Astokhskaya-B (PA-B), and Lunskaya-A (LUN-A);
  • offshore pipeline network;
  • onshore pipeline network;
  • onshore processing facility;
  • compressor and pump station;
  • oil export terminal;
  • liquefied natural gas (LNG) production plant;
  • two gas transfer terminals (facilities supplying gas, inter alia, for the purposes of gasification in the Sakhalin Region).

Company performance

In 2016, Sakhalin Energy’s revenue and profit under International Financial Reporting Standards (IFRS) totaled USD 4,554 million and 869 million, respectively.

Oil

Sakhalin Blend is a special oil grade introduced to the Asia-Pacific market by Sakhalin Energy. It is a blend of sweet crude oil and gas condensate. In 2016, the company sold 5.48 million tons (approximately 42.82 million barrels) of the blend to 14 companies from six countries. The products were delivered via 18 transit and destination terminals in Japan, China, South Korea, Malaysia, the Philippines, and Singapore.

Zaliv Aniva oil tanker

Zaliv Aniva oil tanker

LNG

Russia’s first LNG plant, which was constructed by Sakhalin Energy, began operations in 2009. In 2016, the plant produced 10.93 million tons of LNG, which was exported to Japan, South Korea, China, and Taiwan by buyers’ vessels and the company’s chartered LNG carriers.

Grand Mereya LNG carrier at LNG jetty, Sakhalin II

Grand Mereya LNG carrier at LNG jetty, Sakhalin II

Natural gas

In 2011, Sakhalin Energy started feeding natural gas into Gazprom’s pipeline network. Gas is conveyed via two gas transfer terminals:

  1. terminal in the north of Sakhalin Island, for the Sakhalin – Khabarovsk – Vladivostok gas trunkline;
  2. terminal in the south of Sakhalin Island, for gasification purposes, including for CHPP No. 1.

In 2016, the company delivered a total of some 1.1 billion cubic meters of gas.

Russia's first LNG plant, Prigorodnoye production facility

Russia's first LNG plant, Prigorodnoye production facility

Environment and safety

The company’s environmental efforts are consistent with the national environmental legislation and international environmental standards, as well as best practices in the oil and gas industry.

Sakhalin Energy’s health, safety, environment and social performance management system is certified under such international standards as ISO 14001 and OHSAS 18001.

In addition to implementing a set of organizational and technical measures aimed at ensuring a gradual reduction in adverse environmental impacts and enhancing the professional competencies of its staff and contracting organizations, the company develops and executes programs for industrial environmental control, environmental monitoring, and biodiversity.

In 2016, Sakhalin Energy carried out environmental monitoring and biodiversity measures – jointly with specialized organizations – with regard to:

  • soil cover;
  • river ecosystems, including biotopes, communities, and certain valuable and protected species;
  • flora and vegetation;
  • wetlands;
  • protected bird species, including Steller's sea eagle;
  • marine environment and biome in the impact areas of the company’s offshore facilities;
  • control over ballast water in the coastal area of Aniva Bay near the Prigorodnoye production facility;
  • gray whales and other protected marine mammals.

Sakhalin Energy constantly performs environmental oversight and monitoring in its areas of operation

Corporate social responsibility

Sakhalin Energy’s efforts in the field of corporate social responsibility (CSR) are rooted in the corporate strategy for strengthening the company’s social standing and image and for operating in line with sustainable development principles and ethical norms of business conduct. CSR is integral to Sakhalin Energy’s operations and strategic development plans.

The company’s social investment programs are informed by the long-term goals of Sakhalin Energy in the region of its activities, i.e. Sakhalin Island. The accent is on strategic and long-term partner projects involving external stakeholders and on the use of various mechanisms and technologies for implementing social programs, including competitive distribution of funds. For decision-making purposes on key programs, management bodies and expert panels were set up, namely collegial coordination and deliberative bodies featuring Sakhalin Energy representatives, partners, and members of public associations based in the company’s areas of operation.

Seeking to bring about long-term social change in the affected areas, the company pursues projects in the key dimensions defined in the course of public consultations:

  • environmental protection and biodiversity;
  • safety;
  • education;
  • arts and culture;
  • healthcare;
  • support for indigenous minorities of the Extreme North in the Sakhalin Region.

Development projects

Booster compressor station at OPF

Sakhalin Energy is building a booster compressor station (BCS) at the onshore production facility (OPF) in order to maintain the planned production levels despite the decreasing wellhead pressure at the Lunskoye gas field.

2015 saw the signing of a contract with REP Holding for the manufacturing and delivery of three gas compressors for the OPF’s compressor station. In 2016, Sakhalin Energy inked contracts for vessel manufacturing with Russian and international suppliers. Also that year, Sakhalin Energy signed a contract with Zapolyarpromgrazhdanstroy for BCS site preparation. Work started in August and is expected to be completed in late 2017. Competitive bidding for the EPC (engineering, procurement and construction) contract started in 2016.

Development of Yuzhno-Piltunsky area

The decision on the development of the Yuzhno-Piltunsky area will be made based on the available information regarding the remaining gas reserves in the Lunskoye field, construction of the third train of the LNG plant, the macroeconomic environment, and the situation in the energy source markets. Sakhalin Energy is updating the data on the geological structure, as well as the in-place and recoverable reserves, of the Piltun-Astokhskoye field, including the Yuzhno-Piltunsky area, and is planning to present a comprehensive diagram for field development to the Federal Agency for Mineral Resources.

Third train of LNG plant

In 2016, Sakhalin Energy started the FEED process for the third train of the LNG plant within the Sakhalin II project. Design is being developed by Shell Global Solutions International and Giprogazcenter, Russian design institute, along with a number of other companies based in Sakhalin and elsewhere. In addition, many companies operating in the Sakhalin Region are engaged in engineering and baseline surveys. The LNG plant expansion project is economically feasible and optimal for increasing the share of Russian LNG in the global market.