Sakhalin Energy Says 2007 Production Numbers Up

Sakhalin Energy produced above 1.68 million tonnes (approximately 12.4 million barrels) of oil from the Molikpaq platform in 2007. This exceeded the 2006 production by 100,000 tonnes (some 800,000 barrels).

In the 2007 production season a total of 19 cargoes of Vityaz crude were delivered to Japan, Korea and USA.

The cumulative amount for the subsoil assets usage (royalties) secured the inflow of more than US$250 million into the budgets of the Russian Federation.

In addition to managing the normal oil production Sakhalin Energy undertook a significant amount of additional commissioning during the 2007 season. This centered around new equipment on the Molikpaq platform to allow the hook up of a new offshore pipeline system, which will allow year-round oil production next year.

During the production season up to 164 persons were on board the Molikpaq platform to conduct all these activities.

This year's production achievement was accompanied by strong HSE performance with effectively zero continuous associated gas flaring and on 20th October the Vityaz Complex team clocked up 2.2 million man-hours without a lost time injury.

The decision to suspend the production season a little earlier than usual was taken on 25th November when damage to the Single Anchor Leg Mooring buoy (SALM) was detected after a temporary suspension due to bad weather.

The Okha floating storage facility has left the Vityaz Complex to perform other oil deliveries.