The other three shareholders, Royal Dutch Shell plc, Mitsui & Co Ltd, and Mitsubishi Corporation, each dilute their stakes by 50%, to receive a proportionate share of the purchase price: Gazprom will now hold 50% plus one share, Shell 27.5%, Mitsui 12.5%, and Mitsubishi 10%.
With its LNG capacity effectively sold, Sakhalin II is moving to firmly establish its position on the global energy map as a reliable new energy source for customers. Through the ‘area of mutual interest’ arrangement with Gazprom, the prospects for expansion of Sakhalin II through further LNG processing trains are enhanced. In addition, the Ministry of Natural Resources of the Russian Federation has announced its approval of the revised environmental-action plan (EAP).
Sakhalin is a new world-class oil and gas province, with estimated resources of some 45bn brl of oil equivalent (boe). Sakhalin II, the largest integrated oil and gas export project in the world, with total resources of some 4bn boe, currently has a production capacity of 80,000 boe/d during the production season. The next phase of development will take the total project capacity to 395,000 boe/d, including 9.6m ton/yr of LNG production. This phase of the project is over 80% complete.
Sakhalin II includes the following elements:
Offshore production facilities including the Molikpaq platform (Piltun Astokh-A), the new Piltun Astokh-B and Lunskoye-A platforms, and 300km of offshore pipelines;
an onshore processing facility to take the gas and crude oil from both fields;
onshore oil and gas pipelines to the south of the island;
an oil export facility capable of year-round operation;
the first LNG plant and associated export facilities built in Russia;
island infrastructure upgrades, such as roads, bridges, rail, port, airport, and medical facility upgrades.