Sakhalin-2 is Ready to Become a Centre of Competence for Integrated Field Development

On 27 September, a plenary session entitled “The Far East: New Prospects for the Oil, Gas and Energy Sector” was held as part of the Far Eastern Energy Forum “Sakhalin Oil and Gas - 2023”. The key event of the first day of the conference brought together representatives of legislative and executive authorities, business, expert and scientific community.

This year, the priority theme of the forum was the development of technologies in the energy sector against the backdrop of a difficult international situation. According to Valery Limarenko, Governor of Sakhalin Oblast, despite the current macroeconomic situation, the region, as well as the oil industry, withstood sanctions pressure with dignity. He thanked the key companies that have reached their oil and gas production targets and demonstrated high professionalism in solving the most difficult tasks. These include Sakhalin Energy, with which the regional government is jointly implementing a project to build an oil and gas industrial park. “It has already become a platform for service businesses and a promising area to work with core investors. The establishment of the oil and gas cluster will ensure Sakhalin's technological independence fr om external engineering solutions, while concentrating facilities in one area to service hydrocarbon production projects,” added Valery Limarenko.

He emphasised that today the development of the region's oil and gas industry is based on the principle of deep processing of extracted natural resources. The relevant task was voiced by Russian President Vladimir Putin during the EEF-2023. “Now the regional government is working out the possibility of developing such projects on Sakhalin with the largest players in the oil and gas market, in close proximity to the extracted natural resources,” the Governor said.

The forum participants were particularly interested in the action strategies of industry leaders for business sustainability in the face of current challenges. According to Sergey Menshikov, Member of the Gazprom Management Committee - Head of the Department, PJSC Gazprom pays great attention to the development of projects in the East of the country and develops strategic cooperation with Sakhalin Oblast – a region wh ere a new gas production centre has been established, capable of supplying energy resources to consumers in the Far East and Asia-Pacific countries. He noted that Gazprom is one of the most reliable partners of the region, ensuring the process of social gasification of the islands, construction and equipping of sports, education and healthcare institutions. "We have a lot of work to do, and in cooperation with the regional authorities, the entire volume will be accomplished. The joint plans of Gazprom and the government are focused on further social and economic development and growth in the well-being of the region's residents,” stressed Sergey Menshikov.

Commenting on the situation in the fuel and energy sector, Roman Dashkov, Chief Executive Officer of Sakhalin Energy, noted that it is evident from particular cases that LNG will be the main driver for growth in global gas consumption. In this regard, Asia-Pacific countries are becoming the key consumers of energy resources, and the intensive development of economic relations with these countries is directly related to Sakhalin’s oil and gas industry.

“For the Sakhalin Oblast to develop in an integrated and efficient manner both as a leading energy producer for the Asia-Pacific countries and as a guarantor of energy security of the Far East region, it would be reasonable to establish a Coordination Centre. It will address the key tasks of supplying energy resources to both internal and external consumers, which will make it possible to develop and monetise Sakhalin’s resources in the best possible way within one centre,” said Roman Dashkov.

The Centre’s work should be based on the principles of win-win cooperation and observance of the balance of interests of the state, business, producing companies, subsoil users and consumers. Another key requirement is that the Coordination Centre should be based on the human potential development policy and be actively involved in the talent and technological development within the oil and gas industry. All this should be in balance with environmental and social considerations, and ultimately contribute to addressing the region’s pressing challenges.

The Head of the Company proposed to consider the Sakhalin-2 project as the Centre, which has shown the sustainability of production and reliability of supplies to both Russian consumers and for export commitments over almost 30 years of operation. “Such a scenario will give the outlook for a clear planning of the balance of production and supply with reference to a specific resource base within one project, and will help to plan the development of the entire Far East region in a clear and competent manner,” summarised Roman Dashkov.

The consolidation of competences in offshore oil and gas production is driven by many years of experience and co-ordinated work of Gazprom Group companies on Sakhalin and the idea was reflected in the corporate exhibition booth. It offers visitors the opportunity to see scale models of Russia’s first fixed offshore gas production platform Lunskoye-A and an subsea production system, communicate with production facilities of the Sakhalin-2 project via online video link, try out a unique VR training simulator or study a map of gas supply projects in the region. Valery Limarenko and Sergey Menshikov were among the first guests of the booth. They were highly interested in visiting the mobile exhibition of drilling and oil and gas production equipment used in the Sakhalin-2 project. The Company intends to use the booth for career guidance, which is one of the key areas for the development of the Sakhalin Oblast’s talent pool.

Sakhalin-2 is Ready to Become a Centre of Competence for Integrated Field Development

27 September 2023