sakhalin ii project update - keei · 2014-07-18 · 1 sakhalin ii project update presentation at...
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Sakhalin II Project Update
Presentation at the seminar “Tasks andStrategies for Energy Cooperation between Russia and Korea
after the Summit Talk in September".
Viktor SnegirDeputy General Manager Commercial
Sakhalin Energy Investment Company Ltd.17th December 2004
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II
I
III
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IV V
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VIIIX
VIII
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Sakhalin Shelf: Hydrocarbons in PlaceSakhalin Shelf: Hydrocarbons in Place
GAS-IN-PLACE ( 196 Tcf )10%
12%
14%
20%
0004%
Sakhalin ISakhalin IISakhalin IIISakhalin IVSakhalin VSakhalin VISakhalin VIISakhalin VIIISakhalin IX
40%
OIL-IN-PLACE (60,500 MMbbls)
13%
7%
26%
8%
34%
7%3% 0.5%
1.5%
BOE In-Place ( 94,300 MMboe )
11.5%
9%
31%
10%
29%
1%
6%
0.5%2%
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Sakhalin Energy (SEIC) Sakhalin Energy (SEIC) -- PSA StructurePSA Structure
Sakhalin Energy Investment Company Ltd.Sakhalin Energy Investment Company Ltd.Supervisory
Board
SupervisoryBoard
Shell Petroleum NVShell Petroleum NV
Shell SakhalinHoldings B.V.
Shell SakhalinHoldings B.V.
Russian FederationSakhalin Oblast
Russian FederationSakhalin Oblast
Mitsui & Co. LtdMitsui & Co. Ltd Mitsubishi Corp.Mitsubishi Corp.
Diamond GasSakhalin B.V.
Diamond GasSakhalin B.V.
100%100% 100%
25%
Mitsui Sakhalin Holdings B.V.
Mitsui Sakhalin Holdings B.V.
20%55%
Shareholders Agreement
Shareholders AgreementProduction Sharing
Agreement (1994)
Production Sharing Agreement (1994)
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Sakhalin II Hydrocarbon ResourcesSakhalin II Hydrocarbon Resources
2 Large Fields located off shore North East SakhalinPA is an oil field with associated gas. Lunskoye is a gas field with condensateTotal in place volume is 4.2 billion barrels of oil and 24 TCF of gasRecoverable reserves are 1 billion barrels of oil and 18 TCF of gas. This is enough to supply 10 MTPA of LNG for 25 years
(Add graphic –Sakhalin Fields)
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Sakhalin II Project Sakhalin II Project -- Phase 1Phase 1
Vityaz Complex:60-70,000b/d oil production for a six month summer season from the Astokhfeature, utilizing Molikpaq and FSO.
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Supplying crude oil to customers since 1999Supplying crude oil to customers since 1999
More than half of crude oil produced since 1999 was exported to Korea. Buyers: SK Corp, LG Caltex, Hyunday.
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Phase 2 of the Project: A Four Year ChallengePhase 2 of the Project: A Four Year Challenge
Piltun -B platform
Astokh year round production
Lunskoye-A platformOnshore processing facilityOil and gas pipelinesLNG plant and export terminal
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A Globally Integrated Team
AMEC (UK)Topsides Design
Parsons (UK)OPF Design
Starstroi (Russia)Onshore Pipeline Design
AKQuattrogemini (Russia)CGBS Construction
MTI Design
Offshore Pipeline Design
SHI (South Korea)Topsides Construction
Saipem (Italy)
ABB(Holland)
Aker Kvaerner (Norway)CGBS design
TLU designNSC (Holland)
CTSD (Japan)LNG design
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Offshore platformsOffshore platforms
• Lunskoye4 leg concrete gravity base.Topsides 22,000 tonnes.Gas production 1800 mmscf/d.30 well slots.Possible oil rim production.
• Piltun4 leg concrete gravity base.Topsides 28,000 tonnes.Oil production 70,000 b/d.Gas production 92 mmscf/d.45 well slots.
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Vostochny Port Vostochny Port –– CGBS SiteCGBS Site
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CGBS CGBS –– Concrete Gravity Base StructureConcrete Gravity Base Structure
CGBS PA-BCGBS LUN-AReady for tow out: 1st July 20051st June 2005
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LunskoyeLunskoye GBS GBS –– First Leg Completed First Leg Completed –– October 22ndOctober 22nd
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Tow to Offshore LocationTow to Offshore Location
TOWING ROUTE TO FIELDPA-B
LUN-A
Vostochny,Casting Basin
LUN-A• Towing distance ≈ 960 nm.• Duration of tow ≈ 16 days.• 3 Tugs, each of 150 Tonnes.• 1 Tug to assist during tow.
PA-B•Towing distance ≈ 1020 nm.• Duration of tow ≈ 17 days.• 3 Tugs, each of 150 Tonnes.• 1 Tug to assist during tow.
Milestone 5LUN-A, install 15th July 2005.Milestone 6PA-B, install 15th September 2005.
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Concrete Gravity Structure Tow & Installation ProcessConcrete Gravity Structure Tow & Installation Process
May 2000
SUBICBAY
CGSLOCATION
1st June 2000
2nd June 2000
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Lunskoye Topsides StatusLunskoye Topsides Status
Setting 1st UD Block – 7th July 2004
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PiltunPiltun--B B –– StatusStatus
PAB Lower Deck Block LD 21 – Turn Over
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PiltunPiltun--B B -- StatusStatus
PA-B Mezzanine Deck –MD 11
PA-B Lower Deck Block LD-12-13-14 & 21 assembly.
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Molikpaq Platform (PiltunMolikpaq Platform (Piltun--A)A)
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OPF OPF –– View to the North EastView to the North East
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OPFOPF –– View Looking NorthView Looking North
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OPF OPF -- StatusStatusPiperack Erection
Gas/Liquid Exchanger onto Foundations Condensate Tank
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Offshore Pipelines Offshore Pipelines –– StatusStatus
Lunskoye and Piltun Landfall Cofferdams – June 2004
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Offshore Pipelines Offshore Pipelines –– StatusStatus
Lunskoye Landfall – Cofferdam with Pull-heads
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Onshore Pipelines Onshore Pipelines –– StatusStatus
Lowering at KP 589
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Plant Site OverviewPlant Site Overview
UtilityUtility
Train 1Train 1
LNG JettyLNG Jetty
OETOET
MOFMOFLNGTankLNGTank
Train 2Train 2
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LNG Plant/Oil Export Terminal SiteLNG Plant/Oil Export Terminal Site
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Overall Phase 2 StatusOverall Phase 2 Status
Phase II Construction is currently 50% completeBoth oil & gas pipelines under constructionFinished construction facilities and foundation work at the OPF and work has started on import of equipment and construction of main OPF facilities Construction of main LNG Plant components is underwayMain steel structures of platforms under constructionGBS platforms on schedule for tow-out in summer 2005
Monthly spend is in the order of $250 millionApproximately 13,000 contractors (expat, local and Russians from the mainland) are now working on the Island 1st LNG Delivery Date remains 1 November 2007
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First four Japanese CustomersFirst four Japanese Customers
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Kyushu Electric SPA Signed; additional volumeKyushu Electric SPA Signed; additional volume
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Tokyo Electric SPA Signed; additional volumeTokyo Electric SPA Signed; additional volume
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Republic of KoreaRepublic of Korea
On 20th August 2004 Sakhalin Energy was invited by KOGAS (Korean Gas Corporation) to participate in the tender for long term LNG supply to Korea. Sakhalin Energy has been shortlisted as Negotiation InviteeCurrently negotiating with Kogas
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New LNG Terminals in ChinaNew LNG Terminals in China
West-East Pipeline
Kovykta Pipeline >2012
7. Dalian LNG (2012)
(NDRC Planned Projects)
3. Shandong LNG (2008)
6. Jiangsu LNG (2011)
4. Shanghai LNG (2009)
5. Zhejiang LNG (2010)
2. Fujian LNG (2007-08)
1. Guangdong LNG (2007)
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Main markets for Sakhalin LNG Main markets for Sakhalin LNG --Japan, USWC/Mexico, Korea and ChinaJapan, USWC/Mexico, Korea and China
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APEC, Bangkok, October 2003APEC, Bangkok, October 2003
“Russia is also prepared to make its contribution to creating a new energy configuration in the Asian and Pacific Region.For example, in 2007 it is planned to open a factory for liquifying natural gas on Sakhalin – one of the largest (LNG) factories in the world.”
President Vladimir Putin
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LNG shipping route to South Korea LNG shipping route to South Korea
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With the development of the Sakhalin projects, Russia is now establishing itself as a reliable supplier of oil and gas in the Asia-Pacific.
Diversification of Supply enhances Energy Security for Korea.
Kogas will be the single biggest buyer of the Russian LNG once a deal is achieved.
LNG from Sakhalin will also enhance Korean/Russian bilateral energy relationship for the future projects.