Petrofac Scoops $700 Million Sakhalin Island Project Award

Oilfield services company Petrofac has been awarded a contract worth more than $700 million by Sakhalin Energy for its onshore processing facility (OPF) on Sakhalin Island.

Sakhalin Energy is delivering the Sakhalin-2 oil and gas project, which involves the development of two offshore fields: Piltun-Astokhskoye and Lunskoye oil and gas fields in the Sea of Okhotsk of the north-eastern coast of Sakhalin, including production and export of oil and liquefied natural gas (LNG).

The OPF is located off the north-eastern shore of Sakhalin Island, 7 km inland from the landfall of the offshore gas pipelines from the Lunskoye-A platform.

The primary function of the OPF is to process gas and condensate received from the Lunskoye offshore field for the pipeline transportation to the oil export terminal and LNG plant at Prigorodnoye production complex. It also receives oil and gas streams from the Piltun-Astokhskoye-A (PA-A) and Piltun-Astokhskoye-B (PA-B) platforms for onward transportation by pipeline to oil export terminal.

Petrofac said on Wednesday that the project comprises a lump-sum engineering, procurement and offshore fabrication component, as well as a reimbursable element for construction and site services.

The scope of work includes inlet separation and feed gas compression facilities, a new flare system, utilities, substations and associated buildings, a temporary beach landing facility, refurbishment of the existing camp, temporary site facilities for Sakhalin Energy and Petrofac, as well as brownfield tie-ins to the existing OPF. With early engineering work already underway, the project will support Sakhalin Energy in maintaining its sustainable LNG capacity, Petrofac said.

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Sunder Kalyanam, Group Managing Director for Petrofac’s Engineering & Construction Growth business, said: “We have been executing projects in Russia since the 1990s and this marks our tenth in the country. Sakhalin Island is a very familiar location for Petrofac as our Sakhalin Technical Training Centre (STTC), established in 2008, has been helping meet increased local demand for competent personnel specializing in the oil and gas industry. From STTC we are able to supply a wide range of technical support services including front-end engineering and design, pre-commissioning and commissioning, operations and maintenance as well as technical manpower support.”

The Sakhalin Energy shareholders are Gazprom, Shell, Mitsui and Mitsubishi Corporation’s subsidiary, Diamond Gas Sakhalin.