Sakhalin Energy Begins Drilling Offshore in Russia

Tuesday, July 10, 2007
Sakhalin Energy said it had started drilling the first offshore gas wells from the Lunskoye-A platform. The platform is Russia's first gas-producing offshore platform located at the Lunskoye gas and condensate field, 9.3 miles off northeastern Sakhalin. The platform is designed for year-round operation in harsh weather conditions, and is able to withstand high seismic activity, the company said.

The $20b Sakhalin II project is developing the Piltun-Astokhskoye and Lunskoye oil and gas fields on the island's northeastern shelf, with recoverable reserves of 150 million metric tons (1.1 billion barrels) of oil and 500 billion cubic meters of gas. The project's shareholders are Russian energy giant Gazprom (50%), Royal Dutch Shell (27.5%) and Japan's Mitsui (12.5%) and Mitsubishi (10%). Source: RIA Novosti

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