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
Unit name Status Operator Owner Discovery year FID1 year Production start year Production type
Sakhalin-1 operating[1] Sakhalin-1[2][3][4] Sakhalin-1 LLC [100%][2][5][6][4][7] 2005[8] 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 37700.0 million m³ 2017 [9]
gas 2P reserves 47400.0 million m³ 2017 [9]
gas reserves 484220.7 million m³ 2019 [10]
hydrocarbons 2P reserves 463.0 million boe 2017 [9]
hydrocarbons 1P reserves 329.8 million boe 2017 [9]
oil 2P reserves 174.2 million bbl 2017 [9]
oil 1P reserves 100.1 million bbl 2017 [9]
oil reserves 2300.0 million bbl 2019 [10]

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

million bbl/y = million barrels of oil per year
Category Fuel description Quantity Units Data year Source
production liquids 109.5 million bbl/y 2018 [11]

Location

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

Location Onshore/Offshore Coordinates (WGS 84)
offshore, Russia[12] offshore[13] 52.3765, 143.9549 (approximate)[12]

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.[14] The project's output collapsed following the force majeure, but full production was restored by January 2023.[15]

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.[16]

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.[17] While SODECO (30%) and ONGC Videsh Limited (20%) maintained their shares in the new operator, Exxon's 30% stake was transferred to Sakhalinmorneftegaz-Shelf.[18]

In December 2024, the Russian government has granted Exxon an extension until January 1, 2026, to divest its 30% stake in the project.[19]

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. (PDF) https://www.rosnedra.gov.ru/data/Files/File/8762.pdf. {{cite web}}: Missing or empty |title= (help)
  2. 2.0 2.1 https://web.archive.org/web/20230419005630/https://www.upstreamonline.com/politics/putin-presses-on-with-search-for-buyer-of-sakhalin-1-stake-after-exxonmobil-exit/2-1-1431657. Archived from the original on 19 April 2023. {{cite web}}: Missing or empty |title= (help)
  3. https://energybase.ru/news/industry/sahalin-1-na-odin-gazeta-kommersant-no-187-7388-ot-10102022-2022-10-09. {{cite web}}: Missing or empty |title= (help)
  4. 4.0 4.1 https://web.archive.org/web/20250515170341/https://neftegaz.ru/news/gosreg/808247-v-putin-podpisal-ukaz-predpolagayushchiy-izyatie-doley-uchastiya-wintershall-dea-i-omv-v-rossiyskikh/. Archived from the original on 15 May 2025. {{cite web}}: Missing or empty |title= (help)
  5. https://web.archive.org/web/20220303112636/https://www.sakhalin-1.com/en-RU/Company/Who-we-are. Archived from the original on 03 March 2022. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  6. https://web.archive.org/web/20230101020213/https://www.wsj.com/articles/russia-wipes-out-exxons-stake-in-sakhalin-oil-and-gas-project-11666040367. Archived from the original on 01 January 2023. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  7. https://web.archive.org/web/20250515181542/https://vims-geo.ru/ru/activity/iacn/russia/gosdokladi/. Archived from the original on 15 May 2025. {{cite web}}: Missing or empty |title= (help)
  8. 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)
  9. 9.0 9.1 9.2 9.3 9.4 9.5 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)
  10. 10.0 10.1 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)
  11. 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)
  12. 12.0 12.1 (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)
  13. https://www.naturalearthdata.com/downloads/10m-physical-vectors/10m-land/. {{cite web}}: Missing or empty |title= (help)
  14. "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)
  15. "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)
  16. "Russia Seizes Exxon's Stake in Sakhalin-1 Offshore Project". The Maritime Executive. Retrieved 2025-01-08.
  17. "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)
  18. 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.
  19. "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.