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Sakhalin III

Strategy

The basic document providing 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: 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.

Drilling Platform in Kirinskoye Field

Drilling Platform in Kirinskoye Field

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).

Gas reserves and 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 – nearly 1 trillion cubic meters.

In order to arrange gas production in the Sakhalin III project blocks, Gazprom is planning to perform by 2020 over 3 thousand square kilometers of 3D seismic work and construct 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 basic resource base for the Sakhalin – Khabarovsk – Vladivostok gas transmission system. The Kirinskoye gas and condensate field (GCF) is a top priority development objective in the Kirinsky block.

Kirinskoye field

The Kirinskoye GCF is located offshore the Sakhalin Island (Sea of Okhotsk). The field was discovered in 1992.

The ABC1+C2 reserves of the Kirinskoye GCF account for 100 billion cubic meters of gas and 11.4 million tons of gas condensate. The field is scheduled for commissioning in 2014.

In July 2009 Gazprom commenced exploratory drilling in the field.