Sakhalin-1 Oil and Gas Project (Russia)

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Sakhalin-1 Oil and Gas Project (Сахалин-1) is an operating oil and gas project in Russia.


The project consists of the following units:

Project Details

Main Data

Table 1: Project-level project details for Sakhalin-1 Oil and Gas Project

1Final Investment Decision
2If a country or region is known to not produce any hydrocarbons in an unconventional method, this production type is assumed to be conventional
Unit name Status Operator Owner Discovery year FID1 year Production start year Production type2
Sakhalin-1 Operating[1] Sakhalin-1 LLC[2] Sakhalin-1 LLC (100.0%)[3] 2005[4] Conventional

Production and Reserves

Table 2: Reserves of Sakhalin-1 Oil and Gas Project

million m³ = million cubic meters
million bbl = million barrels of oil
million boe = million barrels of oil equivalent
Fuel description Reserves classification Quantity Units Data year Source
gas 1P reserves 37700 million m³ 2017 [5]
gas 2P reserves 47400 million m³ 2017 [5]
gas reserves 484213.51 million m³ 2019 [6]
hydrocarbons 1P reserves 329.8 million boe 2017 [5]
hydrocarbons 2P reserves 463 million boe 2017 [5]
oil 1P reserves 100.1 million bbl 2017 [5]
oil 2P reserves 174.2 million bbl 2017 [5]
oil reserves 2300 million bbl 2019 [6]

Table 3: Production from Sakhalin-1 Oil and Gas Project

million boe/y = million barrels of oil equivalent per year
Category Fuel description Quantity Units Data year Source
production [not stated] 109.5 million boe/y 2018 [7]

Location

Table 4: Project-level location details for Sakhalin-1 Oil and Gas Project

Location Onshore/Offshore Coordinates (WGS 84)
Offshore, Russia[8] Offshore[9] 52.3765, 143.9549 (approximate)[8]

The map below shows the approximate location of the project:

Loading map...

Background

Following Russia's invasion of Ukraine, Exxon Mobil stated its intention to discontinue all its Russia operations and exit about $4 billion in assets, including the Sakhalin-1 oil and gas project. In March 2022, the company declared a force majeure for its Sakhalin-1 operations due to sanctions imposed on Russia which made it increasingly difficult to continue operations.[10] The project's output collapsed following the force majeure, but full production was restored by January 2023.[11]

In August 2022, the Russian government has ordered a freeze on any sale of Exxon's stake in Sakhalin-1 project, alongside similar bans on foreign-ownership transactions for other energy infrastructure assets. The announcement followed days after Exxon had started negotiations with a third party for a sale of its shares in Sakhalin-1.[12]

In October 2022, President Putin has signed a decree that established a new Russian operator company for the Exxon-lead project. The new company, Sakhalin-1 LLC, is managed by a Rosneft subsidiary Sakhalinmorneftegaz-Shelf, which received investor's rights in the project.[13] While SODECO (30%) and ONGC Videsh Limited (20%) maintained their shares in the new operator, Exxon's 30% stake was transferred to Sakhalinmorneftegaz-Shelf.[14]

In December 2024, the Russian government has granted Exxon an extension until January 1, 2026, to divest its 30% stake in the project.[15]

As of January 2024, ambiguity remains in regard to ownership of the project. While a Rosneft subsidiary officially owns the 30% stake formerly held by Exxon, the Russian government has also informally acknowledged ownership from the oil major, by granting Exxon the 1-year extension to sell its stake in the project.

Articles and Resources

Additional Data

To access additional data, including an interactive map of oil and gas extraction sites, a downloadable dataset, and summary data, please visit the Global Oil and Gas Extraction Tracker on the Global Energy Monitor website.

References

  1. Министерство природных ресурсов и экологии Российской Федерации, Федеральное агентство по недропользованию (Роснедра) (2022). "Государственный Доклад о Состоянии и Использовании Минерально-Сырьевых Ресурсов Российской Федерации в 2021 году" (PDF). Федеральное агентство по недропользованию (Роснедра). Archived (PDF) from the original on 45201. Retrieved Oct 2, 2023. {{cite web}}: Check date values in: |archive-date= (help)
  2. https://www.upstreamonline.com/politics/putin-presses-on-with-search-for-buyer-of-sakhalin-1-stake-after-exxonmobil-exit/2-1-1431657, https://neftegaz.ru/news/gosreg/808247-v-putin-podpisal-ukaz-predpolagayushchiy-izyatie-doley-uchastiya-wintershall-dea-i-omv-v-rossiyskikh/ https://energybase.ru/news/industry/sahalin-1-na-odin-gazeta-kommersant-no-187-7388-ot-10102022-2022-10-09, https://www.upstreamonline.com/politics/putin-presses-on-with-search-for-buyer-of-sakhalin-1-stake-after-exxonmobil-exit/2-1-1431657, https://neftegaz.ru/news/gosreg/808247-v-putin-podpisal-ukaz-predpolagayushchiy-izyatie-doley-uchastiya-wintershall-dea-i-omv-v-rossiyskikh/. {{cite web}}: Check |url= value (help); Missing or empty |title= (help)
  3. https://www.wsj.com/articles/russia-wipes-out-exxons-stake-in-sakhalin-oil-and-gas-project-11666040367, https://www.upstreamonline.com/politics/putin-presses-on-with-search-for-buyer-of-sakhalin-1-stake-after-exxonmobil-exit/2-1-1431657, Rosnedra2023, https://neftegaz.ru/news/gosreg/808247-v-putin-podpisal-ukaz-predpolagayushchiy-izyatie-doley-uchastiya-wintershall-dea-i-omv-v-rossiyskikh/ https://www.sakhalin-1.com/en-RU/Company/Who-we-are, https://www.wsj.com/articles/russia-wipes-out-exxons-stake-in-sakhalin-oil-and-gas-project-11666040367, https://www.upstreamonline.com/politics/putin-presses-on-with-search-for-buyer-of-sakhalin-1-stake-after-exxonmobil-exit/2-1-1431657, Rosnedra2023, https://neftegaz.ru/news/gosreg/808247-v-putin-podpisal-ukaz-predpolagayushchiy-izyatie-doley-uchastiya-wintershall-dea-i-omv-v-rossiyskikh/. {{cite web}}: Check |url= value (help); Missing or empty |title= (help)
  4. https://web.archive.org/web/20230503013625/https://sakhalin.gov.ru/index.php?id=168. Archived from the original on 03 May 2023. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  5. 5.0 5.1 5.2 5.3 5.4 5.5 https://web.archive.org/web/20210920050324/https://sakhalin1.rosneft.com/about/Rosneft_today/Operational_structure/Development_and_Production/Sakhalin1/Reserves_volume/. Archived from the original on 20 September 2021. {{cite web}}: Missing or empty |title= (help)
  6. 6.0 6.1 https://web.archive.org/web/20220302200227/https://www.sakhalin-1.com/en-RU/Company/Who-we-are/Benefits-to-Russia. Archived from the original on 02 March 2022. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  7. https://web.archive.org/web/20220120143710/https://www.sakhalin-1.com/en-RU/Company/Who-we-are/Project-history. Archived from the original on 20 January 2022. {{cite web}}: Missing or empty |title= (help)
  8. 8.0 8.1 (PDF) https://web.archive.org/web/20210917061745/https://www.sakhalin-1.com/-/media/Sakhalin/Files/Publications/ENG-Sakhalin-1-overview-2018.pdf. Archived from the original (PDF) on 17 September 2021. {{cite web}}: Missing or empty |title= (help)
  9. Natural Earth. 45078 https://www.naturalearthdata.com/downloads/10m-physical-vectors/10m-land/. Archived from the original on June 29, 2023. Retrieved June 29, 2023. {{cite web}}: Check date values in: |date= (help); Missing or empty |title= (help)
  10. "Exxon declares force majeure on Russian Sakhalin-1 operations". Reuters.com. Apr 27, 2022. Retrieved Jan 7, 2025.{{cite web}}: CS1 maint: url-status (link)
  11. "Russia's Sakhalin-1 near full oil output after Exxon exit -source". Reuters.com. Jan 9, 2023. Retrieved Jan 7, 2025.{{cite web}}: CS1 maint: url-status (link)
  12. "Russia Seizes Exxon's Stake in Sakhalin-1 Offshore Project". The Maritime Executive. Retrieved 2025-01-08.
  13. "Putin orders seizure of Exxon-led Sakhalin 1 oil and gas project". Reuters.com. Oct 7, 2022. Retrieved Jan 7, 2025.{{cite web}}: CS1 maint: url-status (link)
  14. Afanasiev, Vladimir (2023-04-06). "Putin presses on with search for buyer of Sakhalin 1 stake after ExxonMobil exit". upstreamonline.com. Retrieved 2025-01-08.
  15. "Russia extends deadline for Exxon to sell Sakhalin-1 stake to 2026 in a decree". World Energy News. 2024-12-09. Retrieved 2025-01-08.