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Oil, gas production in Russia's Sakhalin region to rise - local official

© RIA Novosti . V. Nemirovskiy / Go to the mediabankChaivinskoye deposit on the Sakhalin shelf
Chaivinskoye deposit on the Sakhalin shelf - Sputnik International
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Oil and gas extraction companies in Russia's Far Eastern Sakhalin region are planning to increase oil extraction to 23 million tons from 15 million tons a year and gas extraction from 19 million to 60 billion cubic meters, a local government's deputy head said on Wednesday.

Oil and gas extraction companies in Russia's Far Eastern Sakhalin region are planning to increase oil extraction to 23 million tons from 15 million tons a year and gas extraction from 19 million to 60 billion cubic meters, a local government's deputy head said on Wednesday.

"The Sakhalin region in the Russian Far East has become one of the main centers for hydrocarbon extraction in the Asia-Pacific region," Galina Pavlova said during an annual Sakhalin Oil and Gas 2010 conference in the city of Yuzhno-Sakhalinsk.

The Sakhalin-III and Sakhalin-V projects being developed on the Far Eastern island have attracted much attention from business communities, Pavlova said, adding that in the medium-term perspective, the projects may reach the scale of the Sakhalin-I and Sakhalin-II oil and gas developments.

The Sakhalin I project is operated by Exxon Neftegas Limited, a subsidiary of U.S. oil major Exxon, and has recoverable reserves estimated at 315 million metric tons (2.3 billion barrels) of oil and 485 billion cubic meters of natural gas.

The Sakhalin II project, in which Russian gas monopoly Gazprom holds a controlling stake, has estimated reserves of 150 million metric tons (1.1 billion barrels) of oil and 500 billion cubic meters of natural gas.

In 2009, Gazprom received licenses to develop three blocks of the Sakhalin-III project, whose reserves stand at 1.4 trillion cubic meters of gas. Sakhalin-III gas will be sent to the Sakhalin-Khabarovsk-Vladivostok pipeline, which will pump it to Russia's Far East and Asia-Pacific countries.

Earlier this month, Gazprom discovered a new field on the Kirinsky block of the project on the shelf of the Sea of Okhotsk. The company plans to develop the field in the next three years.

Gazprom has invited foreign companies to join the Sakhalin-III project.

The Sakhalin-V project covers the Kaigansky-Vasyukansky deposit, whose recoverable oil reserves are estimated at 1.2 billion tons (8.6 bln barrels), and Vostochno-Shmidtovsky deposit with estimated recoverable reserves of 411 mln tons (3 bln barrels) of oil and 255 bln cubic meters of gas.

Analysts have said the project will be cost-effective due to short oil-delivery routes to the energy-hungry Asia-Pacific region.

The Sakhalin regional government has also supported the construction of an oil refinery with a capacity of up to 4 million tons a year on the island, which has been considered by Gazprom, Pavlova said.

"Petroleum products produced at the oil refinery would cover the needs of the Sakhalin, the Magadan, the Kamchatka regions and the Chukotka Autonomous Area... They could also be supplied to foreign markets, whose capacity, according to current prognoses, will increase permanently," the official said.

 

YUZHNO-SAKHALINSK, September 29 (RIA Novosti)

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