Sakhalin Energy signs Agreement to construct new facility
RELEASE
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Sakhalin Energy Investment Company Ltd. and Petrofac Facilities Management Limited today signed at the Eastern Economic Forum an Agreement to construct a booster compressor station at the onshore processing facility (OPF) within the Sakhalin II project on Sakhalin Island. The project provides for engineering, procurement, construction and servicing activities.
Roman Dashkov, Chief Executive Officer of Sakhalin Energy, and Ayman Asfari, Chief Executive of Petrofac Group, signing Agreement
The scope of work under the Agreement includes supplies of inlet separators and feed gas compression equipment, construction of a new flaring system, utilities, substations, service areas, a temporary unloading berth, and temporary facilities at the construction site for the needs of Sakhalin Energy and Petrofac, reconstruction of the previously used builders camp, as well as connection of the new facility and its integration into the existing OPF system. Preparatory works are already underway as part of the project, and their completion is scheduled for 2022. This will help Sakhalin Energy retain a high level of liquefied natural gas (LNG) production.
Roman Dashkov, Chief Executive Officer of Sakhalin Energy, said at the signing ceremony: “The Agreement signed today is very important for the Sakhalin II project. Our company adheres to high standards that are supported by the shareholders and are in line with the international standards and requirements of creditors. This is why we are entering into this Agreement with Petrofac which has relevant experience in designing, engineering and building infrastructure facilities. Russian companies will be involved in the development of the project documents, construction, and provision of equipment supply services in respect of compressors, separators, and heat exchangers. The signing of the Agreement and the start of corresponding works mean new jobs, as well as transfer of new technologies and unique experience of the international company.”
Background
Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is the operator of Sakhalin II, one of the world's largest integrated oil and gas projects with massive oil and gas infrastructure for hydrocarbon production, transportation and processing. The company markets oil extracted from the deposits located in the Sea of Okhotsk and LNG produced at Russia's first LNG plant built by Sakhalin Energy in the southern part of Sakhalin Island.
The project's infrastructure includes three offshore ice-resistant platforms, the Trans-Sakhalin pipeline system encompassing 300 kilometers of offshore pipelines, an onshore gas pipeline and an onshore oil pipeline (each 800 kilometers long), an onshore processing facility, an oil export terminal, and Russia's first (and so far the only) LNG plant accounting for over 4 per cent of the global LNG output.
The main buyers of oil and LNG produced by Sakhalin Energy are Asia-Pacific countries. At present, the company exports oil to China, Japan, South Korea, Indonesia, the United States, the Philippines, and Taiwan. The main LNG buyers are Japanese, South Korean and Chinese energy companies.
The company's shareholders are Gazprom (50 per cent plus one share), Royal Dutch Shell (27.5 per cent minus one share), Mitsui and Co. (12.5 per cent), and Mitsubishi Corporation (10 per cent).