Sakhalin Oil And Gas Development Co Ltd News

Sakhalin-1 Production Starts

Exxon Mobil subsidiary, Exxon Neftegas Limited, has commenced production from the multiphase Sakhalin-1 Project offshore Eastern Russia. The initial phase of the project will produce 50,000 barrels (6,300 metric tons) a day by year-end 2005 and 250,000 barrels (33,000 metric tons) a day of oil by year-end 2006 from the Chayvo field. Associated domestic gas sales will start at about 60 million cubic feet (1.7 million cubic meters) per day, and ultimately are expected to increase to about 250 million cubic feet (7.1 million cubic meters) per day by the end of the decade. The project start-up was on schedule and within about 10% of unit development cost expectations.