Russia starts
production of oil, gas project in Far East
Oct 2, 2005 - Xinhua English Newswire
Russia starts production of oil, gas project in Far East
MOSCOW, Oct. 2 (Xinhua) -- A major oil and natural gas project off
the Sakhalin island began its industrial production Sunday as Russia
looks increasingly to its Far East region to tap energy reserves.
Some of Russia's largest oil and gas fields are located off Sakhalin
island. The Sakhalin-1 project is a development of three fields on the
northeast of the island. Total recoverable reserves are estimated to be
over 300 million tons of oil and 485 billion cubic meters of natural
gas.
As the initial phase of the Sakhalin-1 project, oil output from the
Chayvo field in northeast Sakhalin island will reach 50,000 barrels per
day (bpd) by the year's end and will ramp up to 250, 000 bpd by the end
of 2006, Exxon Neftegas, the project's operator, said in a press
release.
Natural gas would be delivered to Asian countries through a pipeline
in the future and oil would be shipped abroad via an oil- loading
terminal in the Far Eastern city of Khabarovsk, Exxon Neftegas said.
With a planned total capital investment of 12 billion US dollars, the
Sakhalin-1 project is one of the largest foreign direct investment in
Russia. US oil giant ExxonMobil holds a 30- percent stake in Exxon
Neftegas. Also participating in the project are two Russian, a Japanese
and an Indian companies.
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