Summit News

Russia Sakhalin-1 production to get boost: stakeholder

TOKYO (Reuters) - Production from Russia’s Far East Sakhalin-1 oil project will get a boost of 30,000 barrels per day (bpd) after the second of three fields included in the project reaches peak next year, a stakeholder said on Tuesday.

Crude production from the Odoptu field, slated to start in second-half 2010, will add to output at the current sole producing Chayvo field, Osamu Watanabe, President of Japan Petroleum Exploration (Japex) 1662.T said at the Reuters Global Energy Summit in Tokyo.

Production from the Chayvo oilfield is expected to fall to around 150,000 bpd in 2010, down from about 165,000 bpd in 2009, as production steadily declines after peaking earlier this decade.

The Sakhalin-1 project includes the phased development of three fields with an estimated total resource of 2.3 billion barrels (307 million tonnes) of oil and 17 trillion cubic feet (485 billion cubic meters) of natural gas.

The third field in the development, Arkutan-Dagi, is expected to start production by 2014 and is believed to have peak capacity output of about 80,000 bpd, but nothing has been finalized, Watanabe said.

Japex is a stakeholder in Japan's Sakhalin Oil and Gas Development Co Ltd (Sodeco), which along with field operator Exxon Mobil XOM.N, each hold a 30 percent stake in Sakahalin-1.

Indian and Russian firms hold the remaining 40 percent.

Japex has a little more than 14 percent of Sodeco, which is half owned by the Japanese government and includes trading houses Itochu 8001.T and Marubeni 8002.T among its stakeholders.

Light sweet Sokol crude is exported from the Sakahalin-1 project. (Reporting by James Topham; Editing by Ed Lane and Ramthan Hussain)