Russia Laying the Foundations for Arctic Exploration

Press Release
Monday, September 17, 2012

Gas production in Russia could pave the way for successful arctic drilling projects after new techniques helped improve efficiency during the region’s harsh winters.

The creation of Russia’s first Liquefied Natural Gas (LNG) plant has meant overcoming a number of obstacles similar to those faced within the Arctic region – an increasingly attractive prospect as proven oil and gas reserves decline.

The success of the programme – which has seen the use of “big bore wells” cutting operating costs and increasing gas flow – is an example of how viable working in such harsh conditions can be.

Andrei Galaev – chief executive officer (CEO) of Sakhalin Energy Investment Company Ltd., the company running the first Russian LNG plant, which has an 800km network of onshore pipelines.

Mr Galaev said: “One of the biggest challenges facing the oil and gas industry is that there are less resources that could be easily developed. More frequently the industry is being forced further north and into drilling deeper to discover and extract hydrocarbons.

“It seems almost inevitable that Arctic exploration will take place and there are a lot of similarities between the challenges the industry will face there and what we have been doing at Sakhalin. Certainly the conditions offshore are as harsh as the subarctic ones and the experience Sakhalin Energy gets could be used by those who are looking to develop these barren areas.”

As a result of its recent successes, Sakhalin Energy is now becoming one of the leading energy exporters to Asia Pacific’s highly competitive energy market.

Now Mr Galaev is preparing to discuss his experiences and the innovative technologies applied in the severe natural and climatic conditions of the remote region with industry leaders at the Gastech Conference & Exhibition.

He will take the stage as one of the key speakers at the Centres of Technical Excellence (CoTEs) within the Project Delivery stream, on Monday, 8 October, when he will provide a detailed account of the technological challenges that had to be overcome. The free to attend event will be open to all exhibition attendees, who will be able to hear more about the groundbreaking success of the project for themselves.

Mr Galaev said: “Sakhalin Energy was the first in Russia to start developing shelf deposits with offshore platforms. The project and Sakhalin Energy activity are associated with progressive engineering and design, as well as unique, innovative technologies applied in the severe natural and climatic conditions of the remote region.”

He highlighted the importance of ensuring the safety, reliability and integrity of projects, both to Sakhalin Energy and the industry as a whole as it looks to enter new frontiers.

Mr Galaev added: “We conduct our business in an ethically, socially and environmental responsible manner. And the company is recognised for this approach and its sustainable practices.”

Now in its 40th year, Gastech has become the world’s leading natural gas events and will this year be held at the ExCeL, London, from 8 - 11 October.

The CoTEs are exhibition show floor seminars designed to provide a platform for many of the world’s most-respected industry associations and organizations to deliver knowledge, education and awareness of new innovations and developments in gas technology.

The CoTE seminars will focus on specific areas of interest to those working in the global gas industry, encouraging thought-provoking discussion, from a range of high-level speakers over 12 different streams, focused on specific interest areas.

To register for the Gastech Exhibition and to reserve a free place at the CoTEs please visit


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