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Tuesday 20 Jan. 2015  

Sakhalin-1 Project Begins Production at the Arkutun-Dagi Field

- Arkutun-Dagi production is expected to reach 4.5 million tons per year
- Total Sakhalin-1 development daily production to exceed 27,000 tons

Yuzhno-Sakhalinsk, Russia – Exxon Neftegas Limited announced today it began production at the Arkutun-Dagi field – the last of the three fields developed at the Sakhalin-1 project. Peak daily production from the field is expected to reach 32.5 million barrels per year.

The field, located off the northeast coast of Sakhalin Island in the Russian Far East, will bring total daily production at Sakhalin-1 to more than 200,000 barrels. The other two fields – Chayvo and Odoptu – began production in 2005 and 2010, respectively.

Rosneft Head Igor Sechin said that: “Berkut (“golden eagle”) gave us its first Sokol (“falcon”) – the light low-sulphur oil produced at the Sakhalin shelf. Stability, the strict compliance with all obligations in terms of schedule and quality, is the criteria of proficiency and efficiency of work”.

“I congratulate the team for the safe and successful development of Sakhalin-1’s third field, Arkutun-Dagi,” said ExxonMobil Development Company Vice-President James. K. Flood. “The start-up of this field will continue to add to the benefits the community is receiving through the development of the Sakhalin-1 project.”

Production from Sakhalin-1’s Arkutun-Dagi field will be routed through the existing Chayvo onshore processing facility on Sakhalin Island and delivered through pipelines to the De-Kastri oil export terminal located in Khabarovsk Krai, Russia.

Exxon Neftegas Ltd. is the Sakhalin-1 Consortium operator with 30 percent interest. Coventurers include Sakhalin Oil and Gas Development Co. Ltd., with 30 percent interest, and affiliates of Rosneft, the Russian state-owned oil company, RN-Astra with 8.5 percent, Sakhalinmorneftegas-Shelf, with11.5 percent, and ONGC Videsh Ltd. with 20 percent.