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History

The Sakhalin-1 project is one of the largest offshore investment projects in the Russian Federation, being implemented under Production Sharing Agreements (PSAs) (effective since 1996). The project envisages the development of three offshore fields - Chayvo, Odoptu and Arkutun-Dagi, located on the northeastern shelf of Sakhalin Island in the water area of the Sea of Okhotsk.

The partners in the Sakhalin-1 project are PJSC NK Rosneft with a 20% share, ExxonMobil with a 30% share, SODECO consortium consisting of Japanese companies with a 30% share and the Indian state oil company ONGC Videsh with a 20% share.  The project operator is Exxon Neftegas Limited.

Due to the complexity of the project, it is implemented in several stages. At the first stage, it was planned to organize the production of oil and associated gas at the Chayvo and Odoptu fields. The main production facilities at this stage were the Yastreb drilling rig, the Orlan offshore platform at the Chayvo field, the onshore drilling sites at the Chayvo and Odoptu fields, the onshore processing complex and the pipeline system with the oil export terminal in the settlement of De-Kastri.

The project’s important milestones are worth to be noted:

  • October      1, 2005 - start of production of hydrocarbons at the Chayvo field; the      beginning of natural gas supplies to the Khabarovsk Territory
  • 2006 -      the system for oil export from the terminal in De-Kastri starts to work;
  • 2007 -      commissioning of the onshore processing complex and the launch of      full-scale production;
  • 2008 -      achievement of the project payback threshold, commencement of income tax      payment:
  • 2010 -      start of production at the Odoptu field from the onshore site.
  • 2015 -      start of production at the Arkutun-Dagi field.

In June 2014, the installation of the upper structures of the Berkut rig was completed at the Arkutun-Dagi field using the method of thrusting onto the gravity-based structure, and the Berkut unique offshore oil production rig was commissioned with a total weight of more than 200 thou. tons. 

On October 9, 2014, the first development well was drilled from the Berkut rig. 

During the implementation of the project, the cumulative oil production for the entire Sakhalin-1 project amounted to more than 90 million tons as of May 31, 2017

Several world records were set in the implementation process at the fields of the Sakhalin-1 project. Within the framework of the project, 10 out of 10 world’s longest horizontal wells  were drilled.

Future plans for the implementation of the Sakhalin-1 project envisage an expansion of the development of natural gas resources at the Chayvo field. To implement these plans, it will be necessary to drill additional gas wells and expand existing onshore and offshore facilities

2011-1996
year
2010
year

In 2010, the Odoptu field was put into operation, the launch of which will help stabilize the production level under the project.

2009
year

In 2009, Rosneft's net share was 1.38 million tonnes (10.1 million barrels). The decrease in the net share is due to the decrease in the total production under the Sakhalin-1 project in accordance with the plan for its implementation, as well as the increase in the state's share in accordance with the terms of the PSA.

2007
year

Q1 2007, oil production under Sakhalin-1 reached the project level. In 2008, the production volume under the project was 9.6 million tons (70.4 million barrels) of oil, including Rosneft's net share (after the royalty and state share) of 1.63 million tons (11.9 million barrels).

2006-2005
year

Commercial oil production under the project began in late 2005, when the Chayvo field was commissioned. In 2006, the Chayvo-De-Kastri oil pipeline, the onshore oil processing complex, and the export oil terminal in the port of De-Kastri, were commissioned, and in October 2006, oil exportation to Japan and South Korea was launched. The gas produced within the project is supplied to local consumers via the Daltransgaz pipeline.

2001-1996
year

In 1996-2001, in the framework of the project, exploration and appraisal was carried out, the structure of the fields and the volumes of their reserves were specified. In 2002, work began to create infrastructure and develop fields. Fields are developed in several stages. The first stage involves the development of the Chayvo oil field (started in 2005) and the Odoptu field. At the second  stage (since 2014), the participants will start developing the gas reserves of the Chayvo field. The third stage also involves the development of the oil reserves at the Arkutun-Dagi field starting from 2014. The project life cycle will last until 2040-2050.