Sakhalin II Phase 2 Project Reaches Major Project Milestone

Sakhalin Energy Investment Company Ltd. celebrates the successful completion of almost three years of complex engineering and construction works for the Lunskoye-A (LUN-A) offshore platform Topsides facilities, fabricated by Samsung Heavy Industries at their shipyard in Korea on Geoje Island.

The Topsides comprise a fully integrated deck that incorporates all necessary drilling and production equipment, hydrocarbon liquids separation facilities and living quarters for personnel.

David J. Greer, the Sakhalin II Phase 2 Project Director, referred to the completion of this sophisticated facility as "a triumph of world class engineering at its very best, underpinned by the highest level of professionalism from the construction teams".

"This event is a true milestone for the Sakhalin II Project - one of the world's largest ever integrated oil and gas engineering projects - and one that will unlock Russian gas supplies for the Asian and American markets," said David Greer at the ceremony.

"This production platform has the capacity to produce over 50 million cubic meters of gas per day and will supply the majority of the gas for Russia's first LNG plant that is being built in the south of Sakhalin Island. The majority of the plant's capacity has already been sold to customers in Japan, Korea and the North American West Coast and is clear evidence of Russia's continuing contribution to the global energy challenge".

The LUN-A Topsides have been designed and constructed to support the commercial development of the Lunskoye gas field in the extreme and demanding environment, offshore Sakhalin Island in eastern Russia. The 21,800 ton structure includes 27 well slots for directional drilling, which will enable full development of the Lunskoye field.

On April 21st, the enormous LUN-A Topsides were successfully jacked-up to a height of 25 meters. A dedicated 190 meters long by 95 meters wide T-shape barge has been specifically built to transport these Topsides over a distance of 2831 km from Korea to Sakhalin. On arrival offshore Sakhalin this summer, the installation barge will be towed between the four concrete legs of the LUN-A concrete gravity base structure to allow the Topsides to be lowered into place using the proven float-over technique. Given the total weight of the Topsides, this installation will break the world record currently set for installation operations of this type.

The LUN-A platform will also have friction pendulum bearings installed between the concrete gravity base structure and the Topsides to provide seismic isolation. This is the first time these bearings have been used in the oil and gas industry anywhere in the world. They are designed to protect the platform in the event of a high severity earthquake.