Sabo-Dagi Oil Pipeline

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Sabo-Dagi Oil Pipeline (Russian: Нефтепровод НПС Сабо - УПН Даги) is an oil pipeline under construction in Russia.

Location

The pipeline is proposed to run from the oil pumping station Sabo (нефтеперекачивающая станция/НПС Сабо) in the Okha district, Sakhalin region, to the site of the oil treatment unit Dagi (установка подготовки нефти/УПН Даги) in the Nogliki district, Sakhalin region, on the island of Sakhalin, Russia.

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Project details

• Operator: NNK-Sakhalinmorneftegaz OOO
• Owner: NNK-Sakhalinmorneftegaz OOO
• Parent company: Alliance Oil Company Ltd
• Capacity: 1.2 mtpa
• Length: 117.17 km
• Diameter: 273 mm
• Status: Operating
• Start year: 2022
• Cost: RUB 4.87 billion
• Financing:
• Associated infrastructure: Chayvo-De-Kastri Oil Pipeline; Sakhalin-1 Oil and Gas Project (Russia); Chayvo Oil and Gas Field (Russia)

Background

Construction of the pipeline started in 2017; however, due to the bankruptcy of the Sakhalinmorneftemontazh (contractor), work was stopped in 2019 at the 0-40 km section. According to some sources, construction was complete and works were underway to start commissioning the pipeline in 2022.

In April 2021, the company received a positive review from the government and was ready to restart construction of the remaining segments: in April 2021, the Russian government audit department (Glavgosexpertiza) reported that it had given a positive opinion on the design and estimate documents for the construction of an oil pipeline section in the north of Sakhalin. This project would include an oil pipeline connecting the oil pumping station "Sabo" to the oil treatment unit "Dagi" in the Okha and Nogliki districts of the Sakhalin region. The project would connect the oil fields belonging to Sakhalinmorneftegaz with each other and, after construction of a receiving station, would also connect to the pipeline constructed for the Sakhalin-1 Oil and Gas Project (Russia), the Chayvo-De-Kastri Oil Pipeline.

In May 2022, the construction of the pipeline was completed and commissioning work was underway. According to Governor of the Sakhalin Region Valery Limarenko, approval for connecting the new oil pipeline to the Sakhalin-1 project had already been obtained. An agreement for oil transportation through the pipeline was expected to be signed by July 2022.

Ownership

As of October 2021, the company RN-Sakhalinmorneftegaz OOO is fully owned by NNK-OIL, AO (subsidiary of Alliance Oil Company Ltd) and is expected to be renamed to NNK-Sakhalinmorneftegaz OOO (Russian: ООО "ННК-Сахалинморнефтегаз").