Sakhalin-I


The Sakhalin-I project, a sister project to Sakhalin-II, is a consortium for production of oil and gas on Sakhalin Island and immediately offshore. It operates three fields in the Okhotsk Sea: Chayvo, Odoptu and Arkutun-Dagi.
In 1996, the consortium completed a production-sharing agreement between the Sakhalin-I consortium, the Russian Federation and the Sakhalin government. The consortium is managed and operated by Exxon Neftegas Limited.
Since 2003, when the first Sakhalin-1 well was drilled, six of the world's 10 record-setting extended reach drilling wells have been drilled at the fields of the project, using the Yastreb rig. It has set multiple industry records for length, rate of penetration and directional drilling.
On 27 August 2012, Exxon Neftegas Ltd beat its previous record by completing Z-44 Chayvo well. This ERD well reached a measured total length of, making it the longest well in the world. In November 2017 the record well reached long.

History

Sakhalin I's fields Chayvo, Arkutun-Dagi and Odoptu were discovered by the Soviets some 20 years before the Production Sharing Agreement of 1996. However these fields had never been properly assessed and a reevaluation of the commercial viability had to be carried out. To do this, factors such as the reservoir quality, producibility and well locations had to be found. 3-D seismic is the most common way to determine much of this however shallow gas reservoirs interfered with the seismic signals and blurred the images somewhat.
Two campaigns of 3-D seismic were carried out along with a number of appraisal wells into the Arkutun-Dagi and Chayvo fields. The results were initially average from the appraisal wells with hydrocarbons being successfully tested, but there was still a large amount of uncertainty involved with the project. However, in late 1998, a revaluation of the 3-D seismic data using the most advanced seismic-visualization techniques then available indicated that the hydrocarbon depth on the edge of the field could be significantly deeper than first thought. In 2000, the Chayvo 6a delineation well confirmed what was suspected, a oil column. This provided the certainty that the field was commercially viable in the hostile environment with a potential to be a field.
In 2007, the project set a world record when extended-reach drilling well Z-11 reached. That record was broken in early 2008 with extended-reach well Z-12 reaching. Both extended-reach wells are in the Chayvo field and reach over., the Chayvo field contains 17 of the world's 30 longest extended-reach-drilling wells. However, in May 2008, both world records of ERD well were surpassed by the GSF Rig 127 operated by Transocean, which drilled the ERD well BD-04A in the Al Shaheen oil field in Qatar. This ERD well was drilled to a record measured length of including a record horizontal reach of in 36 days.
On 28 January 2011, Exxon Neftegas Ltd., operator of the Sakhalin-1 project, drilled the then world's longest extended-reach well. It has surpassed both the Al Shaheen well and the previous decades-long leader Kola Superdeep Borehole as the world's longest borehole. The Odoptu OP-11 Well reached a measured total length of and a horizontal displacement of. Exxon Neftegas completed the well in 60 days.
On 27 August 2012, Exxon Neftegas Ltd beat its own record by completing Z-44 Chayvo well. This ERD well reached a measured total length of.
Since the start of drilling in 2003 to 2017, Sakhalin-1 has drilled 9 of the 10 longest wells in the world. Since 2013, the project has set five records for drilling wells with the deepest depths in the world. In April 2015, the O-14 production well was drilled, with length of, in April 2014 the Z-40 well was completed with a length of, in April and June 2013 - the Z-43 and Z-42 wells and long, respectively. In November 2017 the record well reached long.

Development

The three fields will be developed in this order: Chayvo, Odoptu and Arkutun-Dagi. The total project is estimated to cost US$10–12 billion, making it the largest direct investment in Russia from foreign sources. It is also estimated that nearly 13,000 jobs will be created either directly or indirectly. Approximately $2.8 billion has already been spent, which helped lower unemployment and improved the tax base of the regional government. The fields are projected to yield of oil and of natural gas.
In 2007, the consortium reached its production goal of of oil. In addition, natural gas production for the peak winter season in 2007 was.
The first rig is in place for Sakhalin-I, Yastreb, is the most powerful land rig in the world. Parker Drilling Company is the operator of the high rig. Although the rig is land based it will drill more than 20 extended-reach wells horizontally out into the Sea of Okhotsk, and in depth. This land-based offshore drilling arrangement is needed because the Sea of Okhotsk is frozen about four months out of the year. The rig is designed to be resistant to the earthquakes that frequent the area, and operate in the temperatures that can occur in the winter.
As part of the project, Russia is in the process of building a pipeline across the Tatar Strait from Sakhalin Island to De-Kastri oil terminal on the Russian mainland. From De-Kastri it will be loaded onto tankers for transport to East Asian markets.

Consortium

The consortium consist of:
Both Russian entities are Rosneft affiliates.
The fields are operated by Exxon Neftegas Limited.

Environment

Scientists and environmental groups have voiced concern that the Sakhalin-I oil and gas project in the Russian Far East, operated by an ExxonMobil subsidiary Exxon Neftegas, threatens the critically endangered western gray whale population. Approximately 130 western gray whales remain, of which only 30-35 are reproductive females. These whales only feed during the summer and autumn, in feeding grounds which happen to lie adjacent to Sakhalin-I project onshore and offshore facilities and associated activities along the northeast coast of Sakhalin Island. Particular concerns were caused by the decision to construct a pier and to start shipping in Piltun Lagoon.
Since 2006, the International Union for the Conservation of Nature has convened the Western Gray Whale Advisory Panel, consisting of marine scientists who provide expert analysis and advice concerning impacts on the endangered western gray whale population from oil and gas projects in the area, including Sakhalin-I.
In February 2009, the WGWAP reported that the number of western gray whales observed in the near-shore feeding area had significantly declined in the summer of 2008, which coincides with industrial activities conducted by ENL in the area. The WGWAP suggested a moratorium on all industrial activities in the area until their effects had been studied or plans made to mitigate any negative effects of industrial activity had been implemented. Cooperation of Sakhalin Energy-ENL with the scientific panel investigating gray whales was hampered by confidentiality agreements and by ENL's lack of motivation to cooperate with the process.
ExxonMobil has responded that since 1997 the company has invested over $40 million to the western whale monitoring program.
In June 2018 the Sakhalin Environment Watch reported a huge die off of Pacific herring fish at the River Kadylaniy near Sakhalin's pipeline outlet. Low oxygen concentrations, related to oil production work has been suggested as the culprit.