| Russia's
Sakhalin 2 project gets green light
Posted: 18 May 2003
Sakhalin Energy Investment Company Limited received the green light
from shareholders Shell Sakhalin Holdings BV, Mitsui Sakhalin Holdings
BV (Mitsui) and Diamond Gas Sakhalin BV (Mitsubishi) to launch the
second phase of the Sakhalin II project in the far east of Russia.
The joint venture formally declared its positive investment decision
following unanimous approval of its development proposal by both
its shareholders and the project’s Supervisory Board, consisting
of representatives of the company and the Russian Federation.
The Sakhalin II development represents the largest single foreign
direct investment project in Russia, requiring an investment of
approximately $10 billion. Phase 1 of the project has been successfully
producing oil from the Vityaz Complex since July 1999, exporting
10.77 million barrels of oil in 2002.
The decision to commit to Phase 2 underpins what is thought to
be the biggest single integrated oil and gas project ever undertaken.
It also includes the construction of a liquefied natural gas (LNG)
plant with a capacity of 9.6 million tonnes per annum (mtpa).
Sir Philip Watts, Chairman of the Committee of Managing Directors
of the Royal Dutch/Shell Group of Companies, said: “Sakhalin
is a very exciting development. It has a prime position in Asia
Pacific that ensures that it will be a long-term resource delivering
energy on a very competitive basis. This is a strategic legacy project
for Shell that will help to unlock the vast energy reserves of the
Russian Federation. The project will use Shell’s proven LNG
technology and reinforce Shell’s position as the world’s
leader in liquefied natural gas.”
Shoei Utsuda, President & Chief Executive Officer of Mitsui
& Co., LTD., said: “Sakhalin II marks the first gas export
from Russia to Asia, with the development of the first LNG project
in Russia. With its vast resource and proximity to the market, the
project has the potential to change the dynamics of energy flow,
and contribute to the security of energy supply in Asia and the
Russian Far East. I am therefore very proud to be able to take part
in such an amazing project.”
Mikio Sasaki, President and Chief Executive Officer of Mitsubishi
Corporation, said: “ There is no doubt in my mind that today
heralds in a new era for Sakhalin Island as an important new LNG
supply source in Asia. At the same time, it will establish an important
new trade partnership between Russia and Asia. As a shareholder
of the Project, we at Mitsubishi are honoured to be part of this
process.”
Posted by Richard Price,
Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
