Sakhalin Energy


Sakhalin Energy Investment Company Ltd. is a consortium for developing the Sakhalin-2 oil and gas project with corporate head office in Yuzhno-Sakhalinsk. Andrei Galaev has been the chief executive officer since 2009.
The company's principal activities are the production and export of crude oil and liquefied natural gas.

History

The original consortium was formed in 1991 by Marathon, McDermott, Mitsui and Russian Federation as MMM Consortium. Shell and Mitsubishi joined the consortium in 1992, to make it MMMMS. In April 1994, the consortium formed Sakhalin Energy Investment Company Ltd. to develop and manage the Sakhalin II project. Sakhalin Energy signed a production sharing agreement with the Russian Federation in 2004.
McDermott sold its share to the other partners in 1997 and Marathon traded its share to Shell for other properties in 2000.
In 2007, Shell was forced by the Russian government to sell part of its stake to Gazprom which made Gazprom the largest shareholder with 50% share of the company. The consortium then developed into its current form, consisting of Russia's Gazprom, Royal Dutch Shell, and Japan's Mitsui and Mitsubishi.
In November 2009, Sakhalin Energy joined the United Nations Global Compact.

Operations

Sakhalin Energy develops the Piltun-Astokhskoye and the Lunskoye oil and gas fields, known as the Sakhalin-II project, in the Sea of Okhotsk, offshore Sakhalin island in the Russian Far East. The infrastructure of the Sakhalin-II project includes:
About 4% of global supply of LNG comes from the Prigorodnoye production complex. PA-B won the overall Drilling Rig of the year award with Molikpaq in the runner’s up and LUN-A in the 5th place in the Shell Rig League table in 2017, which ranks on the performance, HSE and People scores.

Shareholders

The current shareholders are: