Sakhalin awards billion dollar onshore pipelines contract
Posted: 1 August 2003
Sakhalin Energy has awarded a contract for onshore pipelines,
as part of Phase 2 of the Sakhalin II project, to a consortium comprising
Russian companies Starstroi and LUKoil-Neftegazstroi together with
the European companies Saipem SA and AMEC Spie Capag.
The onshore pipeline project, worth approximately US$1.2 billion,
involves the engineering, procurement (excluding linepipe) and construction
of two 800km pipeline systems that will carry oil and gas from the
Piltun-Astokhskoye and Lunskoye fields via an Onshore Processing
Facility (OPF) in the north of Sakhalin Island to an Oil Export
Terminal (OET) and Liquefied Natural Gas (LNG) Plant in the south.
The Russian consortium representatives are Starstroi and LUKoil-Neftegazstroi
and the majority of work will be performed by Russian companies.
This work will include detailed design, engineering and construction
and will provide employment for a workforce of between 5,000 and
6,000 people on both Sakhalin Island and the Russian mainland.
Jaap Guyt, Project Manager for the Sakhalin Energy Onshore Pipelines
project, said: "The signing of today's contract represents
a significant step towards realising the second phase of the Sakhalin
II Project.
We anticipate construction commencing within the next few months
and finishing by the end of 2006."
"Through our work to date, which included investigating and
designing the pipeline right of way with the local island authorities,
Sakhalin Island communities and field experts, I believe we are
prepared for the challenges this project presents.
"We are committed to working with the winning consortium to
ensure this pipeline project achieves world class standards and
that the environmental impact on Sakhalin Island is minimal,"
said Mr Guyt .
Sakhalin Energy has conducted extensive environmental baseline
data collection and survey work, for more than three years, to assist
with establishing and defining the pipeline right of way.
Where possible, the pipeline route follows the existing roads and
railway corridor between the north and south of the Island and is
re-routed to minimise the risks associated with active seismic faults
.
As part of the scope of work, the winning consortium will also design,
engineer and construct a number of pipeline Block Valve Stations
.
Block valves in the gas pipeline will be installed at 30km intervals
and at seismic fault crossings.
In the oil pipeline they will be installed at environmentally sensitive
river crossings, at fault crossings and at locations where the oil
pipeline passes within 500m of any settlement.
Mr Laurent Bonin, Sales Director of Saipem SA, said: "We and
our consortium partners are extremely pleased to have been awarded
this important contract as part of the Phase 2 project on Sakhalin
Island.
We anticipate being able to commence year-round work on this project,
in line with terrain and seasonal conditions, within the next few
months."
The pipelines will be trenched and laid below ground; the oil pipeline
system comprises 20" and 24" diameter lines and the gas
pipeline system comprises 20" and 48" diameter lines .
The oil and gas will be transported through the pipelines with
the help of a gas compressor and oil pumping stations.
At the start of construction, linepipe will be transported from
staging areas in mainland Russia to a number of ports on Sakhalin
Island, before being delivered by rail and truck to pre-constructed
laydown areas, located at strategic intervals along the course of
the pipeline route.
It is anticipated that the construction work will be split over
four construction sections.
The pipelines will cross over 1,100 rivers, streams, watercourses
and swamps as well as several seismic faults, roads and railways
in the 800km journey from the north to the south of the Island.
At the end of construction, the pipeline working strip will be
reinstated .
This reinstatement process will include the restoration of land
draining systems, re-seeding, terracing to prevent erosion, stabilisation
and environmental compliance.
Pre-construction works and front-end environmental and geographical
survey works have already been completed on the pipeline right-of-way.
The oil pipelines are due to be completed by the end of 2005 and
the gas pipelines by the end of 2006 — in line with the current
scheduled completion dates for the OPF, OET and LNG Plant
Posted by Richard Price,
Editor Pipeline Magazine
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