ExxonMobil Begins Sakhalin-1 Exports
ExxonMobil's subsidiary, Exxon Neftgas Limited, has commissioned the crude oil export system for the multiphase Sakhalin-1 project offshore Russia, bringing to eight the total of ExxonMobil-operated startups within the last 12 months. These significant projects, located in the North Sea, Malaysia, Qatar and in West Africa, are expected to deliver peak gross rates in excess of 1,000,000 barrels a day of oil and more than 1.5 billion cubic feet of daily gas to world energy markets. In addition, last month ExxonMobil and its partners announced the start of construction of a new LNG terminal on the Texas Gulf Coast that will help meet growing U.S. natural gas demand.
First oil for Sakhalin-1 began flowing into the export system on August 29, and it is expected the initial tanker will begin loading at the newly-constructed DeKastri terminal this month. Oil production should ramp up to an estimated peak rate of 250,000 barrels a day by the end of 2006, following completion of the Onshore Processing Facility. In addition to the terminal, the export project includes a 24-inch, 140 mile pipeline and a tanker loading facility designed for year-round crude oil transport.
"The startup of Sakhalin-1 exports will provide additional needed energy supplies to the expanding economies of Asia and to other global customers," said Stuart McGill, senior vice president of Exxon Mobil Corporation. "This project is another example of a long-lead time, technology intensive development brought to fruition this past year to help address the world's ever-growing energy demand."
ExxonMobil has increased daily oil and gas production during the second quarter 2006 by 6 percent compared to the same period last year(1). This additional supply is from developments such as Kizomba B offshore Angola; Yoho, Erha and the Additional Oil Recovery project offshore Nigeria; Ras Gas Train 4 and the Al Khaleej Gas project in Qatar; the Arthur project in the U.K. sector of the North Sea; the Guntong Hub in Malaysia; as well as others in which the company holds interest.
Last month, ExxonMobil and its co-venture partners Qatar Petroleum and ConocoPhillips, announced the start of construction of the Golden Pass Liquefied Natural Gas (LNG) terminal in Sabine Pass, Texas. This billion-dollar construction project will serve U.S. markets and is expected to import two billion cubic feet of natural gas a day by 2009. Golden Pass is part of the company's worldwide program to expand LNG imports to major markets. In addition to Golden Pass, construction of LNG terminals is proceeding in the United Kingdom and offshore Italy with additional facilities under consideration.
With global energy demand expected to increase by almost 50 percent by 2030, and new supplies increasingly found far from the world's major consuming nations, Sakhalin-1, Golden Pass and these other new projects are vital links in an increasingly interdependent global energy supply network. Projects referenced in this release are part of ExxonMobil's ongoing capital construction program that will invest approximately $20 billion in major global projects in 2006 alone.
(1) Excluding the impact of divestments and entitlement effects, ExxonMobil increased production 9 percent over the same period last year.
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