30 Sep 2009 14:32

Oil production at Sakhalin-2

YUZHNO-SAKHALINSK. Sept 30 (Interfax) - Oil production at the Piltun-Astokhskoye field, part of the Sakhalin-2 project, will reach its production plateau of 60,000-70,000 barrels per day in the first quarter of 2010, a source at Sakhalin Energy told Interfax.

That level will be maintained for several years.

Four production wells have been completed at the field and a fifth is being drilled. A total of 42 wells are planned at the field.

Oil production at the second Sakhalin-2 field - Lunskoye - has already reached 60,000 bpd, although exploration work continues at the field.

Gas production at Sakhalin-2 has already reached the design capacity, which is projected to remain unchanged until 2030. Gas production will begin to decline after that date, the source said.

The Sakhalin-2 project envisions the development of the Piltun-Astokhskoye and Lunskoye fields, which have geological reserves of 503.85 million tonnes of oil (118.61 million tonnes of recoverable reserves) and 634.41 billion cubic meters of gas.

The shareholders in project operator Sakhalin Energy are Gazprom with 50% plus one share, Shell with 27.5% minus one, Mitsui with 12.5% and Mitsubishi with 10%.