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Sakhalin III

Strategy

The basic document that sets forth a strategy for developing gas supply to and gasification of Eastern Siberia and the Far East is the state Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). In September 2007 the Program was approved by the Russian Federation Industry and Energy Ministry.

Gazprom was appointed by the Russian Federation Government as the Eastern Gas Program execution coordinator.

New gas production centers will be created in Eastern Russia: the Irkutsk Oblast, Krasnoyarsk Krai, Republic of Sakha (Yakutia), Sakhalin Oblast (Sakhalin Island shelf) and Kamchatka Krai.

Sakhalin III project

The Sakhalin Island shelf is best prepared for gas production and supply to consumers in Russia’s Far East.

The Sakhalin III project will become one of the basic sources of gas supply. Gazprom holds licenses for three blocks within the project: Kirinsky, Ayashsky and Vostochno-Odoptinsky (licenses granted in 2009 pursuant to the Russian Federation Government Directive), and for the Kirinskoye gas and condensate field (license granted in 2008 pursuant to the Russian Federation Government Directive).

Drilling Platform in Kirinskoye Field

Drilling Platform in Kirinskoye Field

Gas resources of the Sakhalin III project are estimated at some 1.4 trillion cubic meters. The bulk of them are concentrated in the Kirinsky block.

In order to arrange gas production in the Sakhalin III project blocks, Gazprom is planning to perform over 3 thousand square kilometers of 3D seismic work by 2020 and construct some 20 exploration wells. The reserves are forecast to grow by some 600 million tons of fuel equivalent, including approximately 500 billion cubic meters of gas.

The Sakhalin III project gas will become the key resource base for the Sakhalin – Khabarovsk – Vladivostok gas transmission system. The Kirinskoye gas and condensate field (GCF) is a top development priority in the Kirinsky block.

Kirinskoye field

The Kirinskoye GCF is located 28 kilometers off the Sakhalin Island shore in the Sea of Okhotsk (sea depth – 90 meters). The field was discovered in 1992.

Based on the results of the geological exploration performed between 2009 and 2010, the Kirinskoye gas and condensate field gas reserves were increased from 75 billion cubic meters of C1+C2 to 137 billion cubic meters of C1.

The Kirinskoye field is Gazprom’s top development priority offshore Sakhalin. For the first time in Russia gas will be produced from the field by a subsea production complex.

Gazprom is pre-developing the field and building the infrastructure facilities at the moment. It is projected to commission the field in 2012. Produced gas will be delivered to the onshore processing facility via offshore pipelines and subsequently conveyed to the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) main compressor station via a gas pipeline (length – 139 kilometers, diameter – 1,020 millimeters, pressure – 100 Ata).

Project development

In September 2010 Gazprom discovered the large Yuzhno-Kirinskoye field containing 260 billion cubic meters of C1+C2 gas reserves and 29.9 million tons of recoverable condensate reserves within the Kirinsky block. It is planned to perform follow-up exploration of the field before 2013.