Russian Governor: Sakhalin-1 Oil, Gas Output Less Than Half of Plan in 2022
(Reuters) — Valery Limarenko, the governor of Russia's far eastern Sakhalin island, told President Vladimir Putin on Monday that oil and gas production at the Sakhalin-1 project was less than half of that planned in 2022.
The project saw a sharp decline in output following the departure of U.S. oil and gas major Exxon Mobil after Moscow sent tens of thousands of troops into Ukraine on Feb. 24 last year.
"First, in May, oil production was practically stopped, and in September, it was gas production. We lost a large amount, more than half, of the annual plan," Limarenko said at a televised meeting with Putin.
Russia is trying to recover losses from the Exxon withdrawal and the local General Prosecutor's Office has been asking a court to recover 15.5 billion rubles ($220 million) in allegedly unpaid taxes from the company.
"Given that two-thirds of the (regional) budget consists of oil and gas taxes, we will lose about 50 (billion rubles, $663.6 million), 49 billion, according to our calculations. We will somehow get out, but this problem really exists," Limarenko told Putin.
He had said in September that oil production of 4.2 million tonnes (84,000 barrels per day) was expected at the Sakhalin-1 project, down from a planned 8.9 million tonnes.
An industry source told Reuters last month that Russia restored oil output at Sakhalin-1.
Exxon took an impairment charge of $4.6 billion on its Russian activities in April. It also reduced local energy production and moved staff out of the country.
Russia last year approved requests by India's ONGC Videsh, the overseas investment arm of state-run Oil and Natural Gas Corp., and Sakhalin Oil and Gas Development Co. (SODECO), a consortium of Japanese firms, to retain their respective 20% and 30% stakes in the Sakhalin project.
($1 = 75.3500 rubles)
Related News
Related News

- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- 208-Mile Mississippi-to-Alabama Gas Pipeline Moves Into FERC Review
- Strike Pioneers First-of-Its-Kind Pipe-in-Pipe Installation on Gulf Coast with Enbridge
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- Kinder Morgan Gas Volumes Climb as Power, LNG Demand Boost Pipeline Business
Comments