Sakhalin Energy, a joint venture controlled by Russia's OAO Gazprom (GAZP.RS) has begun year-round oil export from its new oil export terminal and will start producing liquified natural gas, or LNG, in the next few weeks, the joint venture said Friday.
Year-round export from the Russia's Far Eastern island of Sakhalin has become possible after commissioning of oil and gas pipeline system to the south of the Sakhalin island in Aniva Bay, the company said.
The pipeline system connects three offshore platforms in the so-called Sakhalin II offshore project with the new terminal and port in Aniva Bay at the southern tip of the island.
Oil and LNG will be exported via two supertankers from a new tanker loading unit installed 4.5 kilometers offshore in Aniva Bay, the company said.
Sakhalin Energy is a joint venture between Royal Dutch Shell PLC (RDSA) holding a 27.5% stake, Mitsui & Co Ltd. (8031.TO) holding a 12.5% stake, Mitsubishi Corp.(MSBHY) holding a 10% stake and Gazprom with the remaining 51%.
The first shipment of oil comes from the Molikpaq platform, but later this month the Piltun-Astokhskoye-B platform will also begin sending oil into the system.
Gas condensate from the joint venture's third platform in the Lunskoye gas field will further boost production in the coming weeks, Sakhalin Energy said.
Sakhalin Energy, which is being developed under a production sharing agreement has produced over 100 million barrels of crude oil since 1999, but production has been limited to about six months of the ice-free season, as oil has been exported through an offshore facility.