Sakhalin Energy and Exxon renewed negotiations on gas purchase from Sakhalin-1

​The operators of the projects Sakhalin-1 and Sakhalin-2 – Exxon Neftegas Ltd and Sakhalin Energy – renewed negotiations on the possible gas purchase from Sakhalin-1 for loading of the 3rd stage of the LNG plant Sakhalin-2, is said in the annual report of the Account Chamber.

Sakhalin-1 project is realized in the framework of the PSA and comprises 3 deposits (Chaivo, Odoptu, Arkutun-Dagi) in the north-eastern shelf of Sakhalin. Exxon Neftegas Ltd is the operator of the project and holds 30%, Rosneft -20%, Sodeco-30%, ONGC-20%. Potential recoverable reserves of 3 deposits are assessed at about 307 mln tons of oil and 485 bln cubic m of gas.

ExxonMobil previously insisted on gas export from Sakhalin, including to China. However, by the Russian law only Gazprom has the right for gas export from Russia.

Gazprom has repeatedly tried to agree with Exxon and Rosneft on gas purchase from Sakhalin-1 for the expansion of Sakhalin-2. Exxon didn’t want to sell gas at the domestic price and Gazprom refused to pay the export price. Due to that the gas from Sakhalin-1 is mainly loaded back into the layer.