Page 9 - FSUOGM Week 29 2019

FSUOGM PROJECTS & COMPANIES FSUOGM
Gazprom hires partner for offshore Sakhalin work
RUSSIA
Gazprom held two unsucessful auctions for the work last year.
GAZPROM has awarded a turnkey contract val- ued at RUB50.968bn ($805mn) in June to a local partner for onshore and o shore facilities at the Kirinskoye gas eld o Sakhalin Island.
According to state procurement documents, the gas producer has hired RusGazDobycha (RGB) to build subsea production facilities and an onshore processing plant. RGB is already partnered with Gazprom at a major gas process- ing and liquefaction project on the Baltic Sea, but the company – connected with Kremlin-aligned businessman Arkady Rotenburg – has no prior experience as an oil eld contractor.
Kirinskoye forms part of Gazprom’s Sakha- lin-3 project, comprising a cluster of gas elds in the Sea of Okhotsk. Gazprom brought the eld into operation in 2013 and since then, output has risen to plateau rate of 5.5bn cubic metres per year. Its C1+C2 gas resources are assessed at 162.5 bcm.
Gazprom began its search for a contractor to build new facilities at Kirinskoye early last year, initially o ering up to RUB35bn ($553mn) for the work. Following a rst tender, it selected one of its own subsidiaries, Gazprom Avtomatizat- siya, to carry out construction, but later cancelled the contract.
The company announced a second tender in November, explaining that it had needed to revise the terms for the scope and timing of the required work. It notably raised the contract
price to RUB46bn ($730mn). is contest was also cancelled, however, without explanation.
It then launched the tender again this year, o ering RUB51bn ($805mn).
Gazprom had initially set out to complete the Kirinskoye facilities by the end of this year. But the latest procurement documents show that RGB has until April 2022 to nish the work.
Sakhallin-3 is a major focus for Gazprom. e project’s two other gas elds – South-Kirin- skoye and Mynginskoye – are undeveloped. e larger of the two, South-Kirinskoye, is expected to ow 21 bcm of gas per year at full capacity. But development was put on hold a er the project was targeted by US sanctions in 2015. Sakha- lin-3 also comprises the Ayashsky block, where Gazprom’s oil arm Gazprom Ne has reported two major crude discoveries over the past two years.
Gazprom and RGD intend to commission a gas hub in Ust-Luga on the shore of the Baltic Sea capable of annually processing 45 bcm of gas and producing 13mn tonnes of LNG, 4mn tonnes of ethane and more than 2.2mn tonnes of LPG. e pair have also signed preliminary deals to develop gas elds jointly in Russia.
RGD’s entry into the Baltic gas project earlier this year prompted Royal Dutch Shell to exit the venture. Rotenburg has been blacklisted under US sanctions for his close ties with President Vladimir Putin.™
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