ExxonMobil and Rosneft to stop the slump in extraction at Sakhalin-1

The daily extraction of oil will be increased at two deposits (Odoptu and Chaivo) of Sakhalin-1 project. One more deposit, Arkutun-Dagi, which will provide about 4.5 million tons of oil at its peak, will be put into operation in 2014. However, analysts believe, this won’t help to stop the slump in production.

The operator of Sakhalin-1 Exxon Neftegaz is going to increase oil extraction at  Odoptu and Chaivo, Head of ExxonMobil Russia, Glenn Waller reported. He said, “Odoptu proved to be better than expected” and specified, it was not about the reconsideration of reserves, but about the increase in daily production. The company will announce the concrete figures in a half-year. Chaivo won’t increase its extraction several times, however, the increase will help to compensate for the slump, Mr. Waller added.

The production at Sakhalin-1 has been falling down since 2009. In 2011 planned maximum extraction at Odoptu made up 35-36 thousand barrels per day and 1.5 million tons per year. The indices for Chaivo made up 120-125 thousand barrels per day (in 2010 – 140 thuosand barrels per day) and 5.9 million tons correspondingly.

The extraction at Sakhalin-1 can go on falling, however, not that much as within the last 3 years, thus the planned indices can differ from the obtained, analyst of Troika Dialog IC, Valery Nesterov believes.

Nevertheless, Arkutun-Dagi deposit, which will be launched in 2014, will provide additional volumes of hydrocarbons. It will reach its maximum level of 4.5 million tons by 2017. “This plateau will last 4-5 years”, Waller said. These three deposits are expected to provide stable extraction of hydrocarbons until 2055.

The Berkut drilling platform for Arkutun-Dagi will be finished in two years. On Friday Exxon Neftegaz announced, the building of gravitation foundation, which will be dragged from the dry dock in Vostochny port to the deposit in the beginning of June, was completed. In 2013 the upper part of the platform will be installed at the foundation (the building is being carried out in South Korea). The platform is intended for annual operation in high seismicity zones, can stand low temperatures up to minus 44°С, waves up to 18 metres and ice cover up to 2 metres thick.

The platform will become the largrst oil and gas sea platform in Russia. The company didn’t specify the amount of the investments in its building. As assessed by Valery Nesterov, the value of such platform can make up 0.5-1 billion USD and more, depending on geographic latitude, ice and other conditions.

Rosneft and ExxonMobil will need at least 15 sea platforms more for joint projects in the Kara Sea. “I believe, Berkut is only the first platform, we’ll have tens of other platforms. We’ll learn from this experience and try to use it in other projects”, Glenn Waller said.

Sakhalin-1 includes development of three deposits. Their potential reserves make up 307 million tons (2.3 billion barrels) of oil and 485 billion cubic metres (17.1 trillion cubic feet) of natural gas. Sakhalin-1 consortium includes subsidiaries of Rosneft RN-Astra (8.5%) and Sakhalinmorneftegaz-Shelf (11.5%), Japanese Sodeco (30%) and Indian ONGC (20%). American Exxon Neftegas holds 30% of the project.

Source: http://www.angi.ru/news.shtml?oid=2789036

Translated by Alexandra Utyasheva