Petrofac wins $700 million contract with Sakhalin Energy

The oilfield service company Petrofac has landed a more than $700 million contract with Sakhalin Energy for its onshore processing facility (OPF) on the island of Sakhalin.

Sakhalin Energy operates the Sakhalin-2 offshore oil & gas project, which involves the development (including production and export of oil and LNG) of 2 oil and gas fields: the Lunskoye and Piltun-Astokhskoye oil & gas fields in the Okhotsk Sea offshore the northeast of Sakhalin.

The onshore processing facility is situated on the northeastern coast of the island of Sakhalin.

Petrofac wins $700 million contract with Sakhalin Energy

The OPF’s key function is the processing of gas and condensate received from the Lunskoye offshore field to transport it via pipelines to the oil export terminal and LNG plant at the Prigorodnoye production facility. Oil & gas streams from the Piltun-Astokhskoye-A (PA-A) and Piltun-Astokhskoye-B (PA-B) platforms are also forwarded to this facility for further transportation via a pipeline to the oil export terminal.

The work scope includes building feed gas compression and inlet separation facilities, a new flare system, a temporary beach landing facility, substations, utilities, and associated buildings, refurbishing of the existing camp, temporary site facilities for Petrofac and Sakhalin Energy, as well as brownfield tie-ins to the existing onshore processing facility. Petrofac said that the project would support Sakhalin Energy in their efforts to maintain a sustainable LNG capacity, give early engineering work already underway.

Group Managing Director for Petrofac’s Engineering & Construction Growth Sunder Kalyanam said that the company had been working on projects in the Russian Federation since the 1990s and this one would be their tenth project in Russia. The island of Sakhalin is a very familiar site for Petrofac as STTC (the Sakhalin Technical Training Centre), founded in 2008, helped satisfy the increased local demand for skilled oil & gas industry personnel. They can provide a broad range of technical support services from the Sakhalin Technical Training Centre, including front-end design & engineering, pre-commissioning & commissioning, operations, and maintenance as well as engineering personnel support.

Gazprom, Shell, Mitsui and Mitsubishi’s branch, Diamond Gas Sakhalin are the shareholders of Sakhalin Energy.


Related oil & gas industry news from Sakhalin:
Sovcomflot’s 3rd icebreaker supply vessel naming ceremony
Gazprom Neft’s major oil discovery in the Sea of Okhotsk

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