The Exxon-led project is also doing maintenance this month at the producing Chayvo field, Sydykova said.
The Sakhalin-1 partners include OAO Rosneft, Russia’s largest oil producer, and ONGC Videsh Ltd., which each own 20 percent. Japan’s Sakhalin Oil & Gas Development Co. owns 30 percent and Exxon, the operator, holds 30 percent.
The challenges of developing the technically complex Sakhalin-1 Project offshore eastern Russia are complicated by the harsh Arctic environment. Understanding the local cultural, political and physical environments is critical to success.
Exxon Neftegas Limited (ENL), a subsidiary of Exxon Mobil Corporation, is operator of the Sakhalin-1 Project, which is located offshore Sakhalin Island. Partners include the Japanese company Sakhalin Oil and Gas Development Co. Ltd.; affiliates of Rosneft, the Russian state-owned oil company, RN-Astra and Sakhalinmorneftegas-Shelf; and the Indian state-owned oil company ONGC Videsh Ltd.
Production of these fields is challenged by the presence of pack ice, one to 1.5 meters (three to five feet) thick six to seven months out of the year, and severe wave and earthquake activity year-round. Overcoming daunting weather-related barriers, coupled with the need to build a complete oil and gas infrastructure in such a remote location, has created unique challenges. After 10 years in development, first production flowed from the Chayvo field in early October 2005. Following the completion of the Onshore Processing Facility in late 2006, production reached 250,000 barrels of oil a day in February 2007.