First oil for Sakhalin-1 in 2005: ExxonMobil

ExxonMobil has announced it expects first oil from its Chayvo project in the Sakhalin-1 JV by mid-2005. The energy giant is confident the amount of crude which will be pumped out of the ground will account for at least 3% of Russia’s total crude output.

Chayvo is part of the Sakhalin-1 development, which includes two other oil and gas fields. Crude from the project is primarily earmarked for the Japan and Asian markets in general.

In an interview with Bloomberg, ExxonMobil Development Co President Morris E. Foster said, “The company drilled three wells at the Chayvo field, part of a US$12 billion Sakhalin venture. We are in the process of testing those wells now.”

“Chayvo is the first phase of developments where Exxon Mobil and its partners in the Sakhalin venture plan to tap an estimated 2.3 billion barrels of oil and 17 trillion cubic feet of gas. With North American production slowing, Exxon Mobil is betting on projects in Russia to help achieve its goal of three percent annual gains in output through 2008,” he added.

ExxonMobil is the operator of the Chayvo project and holds a 30% stake. The other partners in the project are Sodeco (30%), OAO Rosneft (20%) and ONGC Videsh (20%).