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Far East gas production

11 February 2009

On 15 January 2009, Sakhalin Energy produced first gas from its Lunskoye-A (LUN-A) platform installed in the Lunskoye field 15 kilometres off the north-eastern coast of Sakhalin Island.
Gas was produced from the first two gas wells, which were completed in December 2008, and gas output has consequently gradually increased.

Lunskoye-A (LUN-A) platform
Lunskoye-A (LUN-A) platform

This is the Company’s third major achievement in the 2008/2009 winter season, following the first commissioning cargo from the oil export terminal on 12 December 2008 and first oil from the Piltun-Astokhskoye-B (PA-B) platform on 23 December 2008.

Gas is now being routed from LUN-A platform through the offshore multiphase pipelines to the Onshore Processing Facility (OPF). From there the treated LUN-A gas is being sent to the liquefied natural gas (LNG) plant in the south of Sakhalin via the TransSakhalin gas pipeline.

Tim Hake, Sakhalin Energy’s Production Director said: “This important step brings us very close to making this ambitious Project a reality. With the start of LNG production in the next few weeks Sakhalin will truly become the new Russian energy source for Asia Pacific.”

Sakhalin Energy is the operator and investor for the $20 billion Sakhalin II project, in which the TransSakhalin pipeline systems carries hydrocarbons from both project fields, the Piltun-Astokhskoye and the Lunskoye.

The minority partners in the project, Royal Dutch Shell, Mitsui and Mitsubishi, currently hold 27.5%, 12.5% and 10% stakes in the project respectively. Gazprom acquired a controlling stake in December 2006.
These oil and gas fields have recoverable reserves estimated at 150 million tons of oil and 500 billion cubic meters of natural gas. All three Sakhalin II platforms, with almost five hundred personnel on rotation, are now on stream.

First gas from the Lunskoye field will be also used for the final stages of commissioning at the LNG plant, substituting for the imported LNG, which was used previously.

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