Sakhalin Energy Says Concrete Work Lunskoye Completed

Sakhalin Energy reports that a significant milestone in the Sakhalin II Phase 2 Project has been reached with the completion at Vostochny in Russia of the main concrete construction work on the huge gravity base substructure (CGBS) for the Lunskoye offshore gas production platform.

Sakhalin Energy and its contractors celebrated the completion of the fourth and final leg of the structure, which finishes the concrete fabrication stage of the platform, with a firework display for the workforce.

A second CGBS for a new Piltun offshore platform is also under construction at the site in Vostochny. The base has already been completed, and two legs are currently being erected with final completion of the concrete works expected in February next year.

Amongst the biggest structures ever built in Russia, the CGBS construction work represents a significant achievement. They are the first structures of their type to be built in the country, and a workforce some 2, 000 Russians are involved in the construction work. They are a visible illustration of how Russia is gaining experience in a major new construction technology, which could lead to opportunities in the future for construction of such structures for other offshore developments.

Sakhalin Energy Deputy CEO and Phase 2 Project Director David J Greer said: "These enormous structures can proudly wear the badge 'Made in Russia'. They have been built by Russians using huge quantities of Russian concrete and steel. The construction of these structures marks a major step forward for Russia and its industry into the new and technologically advanced area of offshore oil and gas platform construction in the Federation.

"I am particularly pleased about the high level of Russian Content achieved on this project, where we exceeded 85%. This achievement will serve to highlight what tremendous productivity and results Russia can and is delivering. It is a great example of the way projects like Sakhalin II can introduce new technology and project management techniques to Russian industry, and the way that industry can rise to meet the challenge. I congratulate them all on their success."

Work will now continue with the fabrication and installation of the mechanical equipment required to finally complete the Lunskoye CGBS. This consists of steel pipework, manifolds and similar equipment that is needed to enable gas to be produced. In this area, Russian companies are also taking a leading role, with Astrakhan Korabel and Nakhodka Ship Repair Yard (NSRY) undertaking the majority of the equipment fabrication work. NSRY is also undertaking some of the equipment installation work.

David Greer added: "Our contractors, their subcontractors, the management and staff together with the people of Vostochny, Nakhodka and Primorsky Krai have done an excellent job of working together in partnership to complete the concrete work on the Lunskoye CGBS safely and successfully. I am confident that this success and cooperation will continue as we continue with the completion of the Piltun substructure."

The Lunskoye concrete substructure consists of a base slab and four cylindrical legs that support the topsides of the new offshore platform. It has a total weight of 116,000 tons. The base is 105 meters by 88 meters and 13.5 meters high. The diameter of each leg measures more than 20 meters and they are some 56 meters high. Total height of the entire structure is 69.5 meters.