Rosneft, Exxon to conduct surveying for Far East LNG project in summer
MOSCOW. May 23 (Interfax) - Rosneft and ExxonMobil have signed an agreement to extend the existing strategic agreement on implementation of the Far East LNG project on Sakhalin, Rosneft said in a press release.
"Work to progress engineering surveys on land and sea are scheduled for summer of 2014," the press release says.
"At this time, conceptual design development has been completed, characteristics defined, and the potential sites for the LNG plant facilities agreed upon, as well as the gas liquefaction technology, as part of the initial design stage. Preparations for the second design stage have been carried out," it says.
Initial design capacity of the plant is approximately 5 million tonnes of LNG per year with a possibility for expansion. Natural gas from Rosneft reserves in the Far East and from the Sakhalin-1 project reserves will be used as feedstock.
"With completion of the conceptual designs, construction and commissioning of the LNG plant, loading line, and off-shore facilities are targeted for 2018-2019."
Sechin also signed an agreement with ExxonMobil Russia President Glenn Waller on "rendering of services by the Sakhalin-1 consortium. The agreement envisages services for the drill, production, preparation, transportation, storage and shipping of hydrocarbons, produced at the north-end of the Chayvo field using the infrastructure of the Sakhalin-1 consortium in accordance with the license obligations and the joint processing development chart," Rosneft said.