Abstract
Sakhalin Energy lnvestment Company Ltd, was formed in April 1994 to operate the Sakhalin-2 project based on the Production Sharing Agreement with the Russian Federation in June, 1994. Shell has a 55% interest in Sakhalin Energy and the other shareholders are Mitsui (25%) and Mitsubishi (20%).Sakhalin Energy started oil production in July, 1999 during the summer season. The project is planned to move to the phase II which is an integrated oil and natural gas development, involving construction of platforms for the Piltun-Astokhskoye and Lunskoye fields offshore Sakhalin lsland, onshore production handling facilities, oil and gas export pipelines to the south of the island and two liquefied natural gas (LNG) plant trains with combined annual capacity of 9.6 million tonnes. It is scheduled to start through the year operation of oil at the end of 2005 with its peak production of 170, 000 barrel per day and to start LNG export at the end of 2006.
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