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Construction of 800 kilometer pipeline completed on Sakhalin

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NOVEMBER 11, 2008

Itar Tass reported that the construction of an 800 kilometer oil and gas pipeline by the Sakhalin Energy Company has been completed.

The filling of the pipeline with oil and gas began recently. In about one month’s time, oil will be supplied from the offshore shelf deposits in the Sea of Okhotsk to the Prigorodnoye port in Sakhalin’s south.

Mr Marina Makarova, SEC manager in charge of the operation of the oil and gas pipeline said that the shipment of oil by the first huge tanker from the harbor is planned for the end of 2008.

An oil shipment terminal and a plant for the liquefaction of natural gas have been built at Prigorodnoye. Ocean going tankers will begin to call there to take hydrocarbon fuel on board for export.

Previously the SEC was producing oil only within an ice free period and was shipping oil from the Vityaz oil extraction facility located at the Piltun Astokh deposit off the north eastern coast of Sakhalin.

The Molikpak offshore platform has been operating there since 1999. This platform alone is busy filling the pipeline transportation system with oil and gas so far. The offshore platforms LUN A and PA B will join in the pumping at the end of the outgoing year. The annual production of oil by the SEC is expected to amount to about ten million tonnes.

There are two operating oil pipelines on Sakhalin as of now. One of them, 220 kilometer long, belongs to the American Exxon Neftegaz Limited Company. It runs from the Chaivo oilfield in the Sea of Okhotsk to De Kastri port on the shore of Khabarovsk Territory. Annual production of oil at Chaivo amounts to 12 million tonnes. The SEC’s 800 kilometer long pipeline also runs to the Prigorodnoye port from the Piltun Astokh and Lun oilfields in the Sea of Okhotsk.

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