Sakhalin-II

Sakhalin-II

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Sakhalin-II

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Description:
The Sakhalin-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-2 includes the first liquefied natural gas plant in Russia. Therefore, the project is of vital importance to Russia's energy policy. This was seen as a reason why the foreign owners of the development were forced to sell a majority stake in the project to Russian gas company Gazprom.

History



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. Under legal and political...
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