Sakhalin-1 gas production won't begin before 2016-2017
MOSCOW. June 1 (Interfax) - Gas production under the Sakhalin-1 project will begin no earlier than 2016-2017, Gazprom Deputy CEO Alexander Ananenkov said at a press conference.
Production might amount to 8 billion cubic meters.
"Implementation of the project's second phase will be realistic at the end of 2016 or the beginning of 2017," he said. "Because nothing has been done there. The investment decision on implementation of the second phase hasn't been made yet. No project, no nothing," Ananenkov said.
Sakhalin-1 is currently producing oil, but annual production is steadily dropping. Production fell 14.2% to 8.2 million tonnes in 2009 and another 14.9% to 6.98 million tonnes in 2010. The project's main field, Chayvo, contains big reserves of gas. Exxon has tried to agree gas exports to the Asia-Pacific region with project partner Gazprom . However, Gazprom has insisted that any gas production be delivered to the Russian market.
This March the Russian government directed the Energy Ministry to resolve the issue of developing Sakhalin-1's gas reserves. One option voiced was delivering the gas to a future third line of the LNG plant built for the Sakhalin-2 project, in which Gazprom is the controlling shareholder.
The gas issue may be decided before the end of the year, Deputy Energy Minister Sergei Kudryashov said.
Exxon Neftegas must register a new technological scheme for development of the Sakhalin-1 fields with the Central Committee for Field Development (TsKR) in 2011. Development of the gas cap at Chayvo might begin no earlier than five years after the scheme is approved.
Project operator Exxon Neftegas has a 30% interest, Rosneft - 20%, Indian ONGC - 20% and SODECO - 30%.
The project is developing the Chayvo and Odoptu fields and will launch development of Arkutun-Dagi in 2014.
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