Sakhalin-1 pipelines contract

LUKoil-Neftegazstroy (LNGS) has been selected as the major subcontractor for engineering, permitting, inland transportation, local procurement, construction, installation and commissioning work for pipelines for the Sakhalin-1 Project. Critical to the Sakhalin-1 Project, the onshore pipeline and offshore pipeline facilities will transfer hydrocarbons between major onshore and offshore facilities. The onshore and offshore pipelines include flowlines to transport production between the Chayvo Well Site, Orlan Platform, the Odoptu Well Sites, and Offshore Production Facilities (OPF). In addition, the pipelines scope includes the oil export line to transfer output from the Chayvo OPF westerly across Sakhalin Island and the Tatar Strait to the Russian mainland. LNGS will work closely with the contract manager Nippon Steel Corporation (NSC) and its Russian affiliate NS Nephtegazstroy Ltd. Work worth over USD 300 million, about 70% of the contract package, will be awarded to LNGS and other Russian subcontractors.
The Sakhalin-1 consortium members include Exxon Neftegas (30% interest, operator), the Japanese company Sakhalin Oil and Gas Development Co., Ltd. (30 %), Indian company ONGC Videsh Ltd. (20 %) and two Russian companies, Sakhalinmorneftegas-Shelf (11.5 %) and RN-Astra (8.5 %).

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