32. Case 28: Sakhalin Project–II

Sakhalin I project consisted of the development of the Odoptu oil and gas field and the Chayvo gas field which was developed during the period 1977–1979. Sakhalin II involved the development of the Piltun Astokhskoye and Lunskoye oil and gas fields. Sakhalin II is termed as one of the largest integrated export oriented oil and gas projects in the world. It is also the first offshore gas project of Russia. The project is operated by the Sakhalin Energy Investment Company Ltd. The project is owned by Gazprom, Shell, Mitsui and Mitsubishi. The infrastructure of the project includes three offshore platforms, an onshore processing facility, 300 km of offshore pipelines, 1600 km of onshore pipelines, oil export terminal and liquefied natural gas (LNG) plant. It is oil and integrated LNG. Sakhalin II has been one of the most technically complex projects undertaken in the global oil and gas industry. Sakhalin II was the result of the visualization of the state policy on the gas industry development for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East. Sakhalin II laid the foundation for Russia to emerge as a leading energy exporter to the energy markets of the Asia Pacific region.