Sakhalin Island’s oil and gas resources

Sakhalin Island’s oil and gas resources are being developed by international consortia. Sakhalin I’s oil production neared its maximum capacity of at 250,000 bbl/d in February 2007, and Sakhalin II produces oil for six months of the year at a rate of roughly 80,000 bbl/d. Other areas around Sakhalin Island are still in early stages of development.

General Background

Sakhalin Island, a former penal colony located off the east coast of Russia and to the north of Japan, holds vast hydrocarbon resources. Oil reserves in the area are estimated at almost 12 billion barrels, and natural gas reserves at approximately 90 trillion cubic feet. International consortia of energy companies have entered into production sharing agreements (PSAs) to develop the resources. Even though all of the consortia have extensive export plans (including to the United States) via LNG terminals and export pipelines to the mainland, there has been little progress except on the first two parts of Sakhalin Island: Sakhalin 1 and Sakhalin 2, which lie to the southeast of Okha (see map to the left, and for more detailed maps click on the project websites for Sakhalin 1 and Sakhalin II below)

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