Sakhalin coordination committee meets
Offshore staff
MOSCOW -- Alexander Ananenkov, deputy chairman of the Gazprom management committee convened a regular meeting of the coordination committee for the organization of Gazprom participation in the Sakhalin oil and gas projects and joint project execution with partners at the company's central office in Moscow.
The meeting highlighted the completion of Gazprom's joining the Sakhalin-2 project deal and addressed the topical issues in relation to the project implementation.
Gazprom and the stockholders of Sakhalin Energy entered into a purchase and sale agreement through which Gazprom acquired a 50% plus one share stake in Sakhalin Energy on April 18, 2007.
"Joining the Sakhalin-2 project provides a powerful impetus for accomplishing a large-scale project in the energy supply sector to Asia-Pacific countries and North America. It will stimulate implementing a stage-by-stage entering strategy on the world LNG market," said Alexander Medvedev, deputy chairman of the Gazprom management committee.
The Sakhalin-2 project is the world's largest comprehensive oil and gas project with the licensed reserves averaging 4 Bboe.
Production potential of Sakhalin-2 is 80,000 b/d of oil equivalent. Thanks to development Phase 2, the project production potential will grow to 340,000 b/d of oil equivalent, Gazprom says, taking account 9.6 million metric tons of LNG to be produced per year.
As of mid-April 2007, the work scheduled for Phase 2 was nearly 80% complete, with $12 billion invested, Gazprom said.
Partners on Sakhalin-2 include Royal Dutch Shell Plc. with 27.5% interest, Mitsui & Co. Ltd. with 12.5% interest, and Mitsubishi Corp. with 10% interest.
5/23/2007