O&G Output at Russia's Pacific Sakhalin Island Seen Down in 2019

Posted by Michelle Howard
Thursday, September 20, 2018

Production of oil and natural gas at the Russian Pacific island of Sakhalin is expected to decline next year, the local government said in an emailed response to a Reuters query.

Sakhalin, which is also famous for producing seafood, derives most most of its oil and natural gas from two offshore projects - Sakhalin-1, led by ExxonMobil, and Sakhalin-2, led by Russia's Gazprom.

Sakhalin-1 shareholders also include Russia's Rosneft , Japan's Sodeco and India's ONGC. Apart from Gazprom, Sakhalin-2 shareholders include Royal Dutch Shell , Mitsui and Mitsubishi.

The government of Sakhalin said that oil and gas condensate output this year is expected to reach 17.4 million tonnes, equating to 348,000 barrels per day (bpd), with production of natural gas at 32.2 billion cubic metres (bcm).

For 2019, oil and gas condensate production is seen declining by more than 11 percent to 15.4 million tonnes, with natural gas output dropping to 29.3 bcm.

It didn't provide a production breakdown for the two projects or the reasons for the production slowdown.

Exxon Neftegas Limited, the Sakhalin-1 operator, said it "continues to maintain production levels consistent with its operatorship obligations under the Sakhalin-1 production-sharing agreement".

Both projects are working under the production-sharing agreements struck in the 1990s.

Sakhalin Energy, the Sakhalin-2 operator, did not reply to a Reuters request for a comment.

Total Russian oil production is still seen rising to 553 million tonnes (11.105 million bpd) this year, up from about 547 million tonnes in 2017. It is expected to peak at 570 million tonnes in 2021.

The monitoring committee of the Organization of the Petroleum Exporting Countries (OPEC) and other large oil producers, led by Russia, will convene this weekend in Algeria to discuss their oil production deal.

OPEC and a group of non-OPEC countries agreed in June to return to 100 percent compliance with oil output cuts that began in January 2017. 

Reporting by Olesya Astakhova Writing by Vladimir Soldatkin

Categories: Government Update Arctic Operations Contracts Offshore Energy Activity Drilling

Related Stories

From Fixtures to Values: Where the Jackup Recovery Is Already Being Priced

Ruwais LNG Commitments Top 90% Capacity with New INPEX Deal

Israel Steps Up Mediterranean Gas Search

ADNOC Launches Global LNG Trading Powerhouse

TotalEnergies Sells Malaysia Offshore Gas Field Stake to Inpex

Sunda Reviews Timor-Leste Appraisal Plans as New Zealand Deal Advances

Petronas Unit Probes Cause of Fire at Offshore Platform in Malaysia

Floating Nuclear: A New Offshore Energy Frontier

Jadestone Brings First Malaysia Campaign Well Online at 3,000 bpd

Vantage Drilling Agrees to $258M Takeover by Eldorado Drilling

Current News

From Fixtures to Values: Where the Jackup Recovery Is Already Being Priced

Eni and Petronas JV Extend Ventura Offshore’s Drilling Job in Indonesia

Dolphin Drilling’s Blackford Dolphin Secures More Work for Oil India

Oil Surges 3% on Renewed US-Iran Strikes

Offshore Vessel Pair Ordered from Grandweld Shipyard

ADNOC, XRG and Mitsui Broaden Energy Cooperation

Ruwais LNG Commitments Top 90% Capacity with New INPEX Deal

Saipem Lands $2B FPSO Deal for Offshore Gas Field in Indonesia

Oil Climbs on US-Iran Deal Uncertainty

Saudi Arabia Eyes Oil Pipeline Expansion to Red Sea

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com