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Sakhalin II

Piltun-Astokhskoye oil field
Lunskoye natural gas field
Sakhalin-II is located in Russia
Sakhalin-II
Location of Piltun-Astokhskoye oil field
Lunskoye natural gas field
Country Russia
Region Sakhalin
Offshore/onshore offshore
Coordinates 52°52′12″N 143°46′12″E / 52.87000°N 143.77000°E / 52.87000; 143.77000Coordinates: 52°52′12″N 143°46′12″E / 52.87000°N 143.77000°E / 52.87000; 143.77000
Operator Sakhalin Energy
Partners Gazprom, Royal Dutch Shell Mitsui, Mitsubishi
Field history
Discovery 1984 (Lunskoye); 1986 (Piltun-Astokhskoye)
Start of development 1994
Start of production 1999
Production
Current production of oil 395,000 barrels per day (~1.97×10^7 t/a)
Current production of gas 53×10^6 m3/d (1.9×10^9 cu ft/d)
Estimated oil in place 1,200 million barrels (~1.6×10^8 t)
Estimated gas in place 500×10^9 m3 (18×10^12 cu ft)
Producing formations Astokh feature

The Sakhalin-2 (Russian: Сахалин-2) project is an oil and gas development in Sakhalin Island, Russia. It includes development of the Piltun-Astokhskoye oil field and the Lunskoye natural gas field offshore Sakhalin Island in the Okhotsk Sea, and associated infrastructure onshore. The project is managed and operated by Sakhalin Energy Investment Company Ltd. (Sakhalin Energy).

Sakhalin-2 includes the first liquefied natural gas plant in Russia. The development is situated in areas previously little touched by human activity, causing various groups to criticize the development activities and the impact they have on the local environment.

The first ever Russian production sharing agreement was signed in the framework of the Sakhalin-2 project in 1994. Production began from the Molikpaq platform in the Piltun-Astokhskoye field in July 1999, and in September 1999 the first crude oil was exported.

The consortium Sakhalin Energy had a contract to produce gas without a local partner. However, in 2005–2006 the consortium was heavily criticized due to environmental issues and the legal proceeding on violation of the Russian environmental regulations were initiated. In the result, The Russian government ordered to terminate the project on September 2006. Under legal and political pressure, the consortium was forced to sell a majority stake to Gazprom. On 21 December, Gazprom took control over a 50%-plus-one-share stake in the project by signing an agreement with Royal Dutch Shell. Russian President Vladimir Putin attended the signing ceremony in Moscow and indicated that environmental issues had been resolved.

The LNG plant was inaugurated on 18 February 2009. The first cargo was loaded to the LNG carrier Grand Aniva at the end of March 2009.

The two fields contain an estimated 1,200 million barrels (190×10^6 m3) of crude oil and 500 billion cubic meters (18 trillion cubic feet) of natural gas; 9.6 million tonnes of liquefied natural gas per year and about 180,000 barrels per day (29,000 m3/d) of oil will be produced. The total project cost until 2014 was originally estimated by Royal Dutch Shell to be between US$9 and $11 billion. However, the costs turned out to be substantially underestimated and in July 2005 Shell revised the estimate upwards to $20 billion.


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