Sakhalin II Project: Key Milestones

January 2011

The oil rim well was completed in at the Lunskoye field.


The LNG plant reached full production capacity (9.6 mln tonnes per year).

October 2010

The two hundredth LNG cargo was delivered from Prigorodnoye Complex to its destination.

July 2010

To debottleneck the existing wells’ operation and improve the future Molikpaq wells’ lay out and trajectories, the first-ever 4D seismic in Russia was successfully carried out in the Astokh area to study changes occurring in the field after 12 years of oil production.

June 2010

Booster Station 2 was set into operation.

June 2010

the Road Safety Partnership Programme and Sakhalin Energy’s internal road safety programme were highly praised by the International Energy Institute and honoured with an award as the best international project in terms of safety. They also won recognition from the RF Government.

January 2010

Delivered the hundredth LNG shipment from Prigorodnoye Complex (symbolically, this shipment was carried by the Grand Aniva, the same LNG carrier that shipped the first LNG cargo from Sakhalin).

December 2009

Sakhalin Energy surpassed its planned estimates for exports of crude oil by 11% and LNG by 47%.

December 2009

Sakhalin Energy received the Shell CEO safety award for the third time.

November 2009

Sakhalin Energy joined the United Nations Global Compact, a strategic initiative to promote corporate social responsibility.

November 2009

The global community recognised Sakhalin Energy’s achievements in environmental safety. The Sakhalin-2 Oil Export Terminal won the Environmental Safety award in the 2nd International Oil Terminal contest.

October 2009

Company signed a longterm charter contract with Primorsk Shipping Corporation for a third tanker Zaliv Aniva. The Aframax class oil tankers, chartered by Sakhalin Energy, each with a gross deadweight over 100,000 are rated Ice 2 (ICE-1C as per international classification).

July 2009

Sakhalin Energy celebrated its 10th anniversary of supplying Sakhalin-2 project oil to the Asia-Pacific market.

July 2009

Molikpaq achieved an important HSE milestone – five years of operating without a lost time incident.

June 2009

The LNG plant received an innovative project award from the Japanese Ministry of Land Use, Infrastructure, Transport, and Tourism.

May 2009

: LNG train 2 (of the LNG plant) started operations.

May 2009

Sakhalin Energy received an award for the best innovative offshore project from the Board of Directors of the Offshore Technology Conference, a world forum for oil and gas technologies.

April 2009

The operation and maintenance services of the TransSakhalin pipeline system were handed over to Sakhalin Energy’s contractor, Gazprom transgaz Tomsk (GTT).

March 2009

Sakhalin Energy delivered the first LNG cargo from the LNG plant to two Japanese companies, Tokyo Gas and Tokyo Electric.

February 2009

LNG plant commissioning ceremony.

January 2009

Commencement of natural gas production from the Lunskoye-A platform.

December 2008

Export of first crude oil cargo from the oil export terminal at Prigorodnoye designed for year-round operations.

December 2008

Sakhalin Energy wins the Environmental Project of the Year award.

October 2008

The Molikpaq platform transitioned to year-round operational status. The filling of the TransSakhalin pipeline system started.

June 2008

The Japan Bank for International Cooperation and an international consortium of commercial banks commit to provide a USD 5.3 billion loan to Sakhalin Energy in a major project finance transaction in the global oil and gas industry.

October 2007

Russia’s Government establishes by a special resolution the Prigorodnoye industrial sea port with LNG and crude oil export terminals.

August 2007

Installation of the PA-B platform, the heaviest ever float-over installation in the sea. Sakhalin Energy broke its own world record for float-over installations of super-large decks. The previous record was the installation of the Lunskoye-A platform in a similar operation a year before.

April 2007

On April 18, the shareholders of Sakhalin Energy and Gazprom sign a sale and purchase agreement regarding shares in Sakhalin Energy which resulted in the following shareholding structure: Gazprom (50% plus one share), Royal Dutch Shell plc. (27.5% minus one share), Mitsui & Co., Ltd. (12.5%), Mitsubishi Corporation (10%). Sakhalin Energy remains the operator of the Sakhalin II project which will continue to be carried out under a production sharing agreement signed by Russia’s Government and Sakhalin Energy in 1994.

December 2006

Gazprom, Shell, Mitsui and Mitsubishi sign a protocol to bring Gazprom into Sakhalin Energy as a leading shareholder.

August 2006

Sakhalin Energy completes the construction of the offshore pipeline.

July 2006

Sakhalin Energy completes installation of Molikpaq Tie In modules, allowing year round oil and gas production and exports from Molikpaq to occur.

June 2006

Sakhalin Energy completes engineering and construction works for the Lunskoye-A (LUN-A) Topsides at the Samsung Heavy Industries shipyard and installs the LUN-A platform.

April 2006

Sakhalin Energy enters into an LNG sales agreement with Hiroshima Gas Company Ltd.

August 2005

The Piltun-Astokhskoye-B (PA-B) concrete gravity base structure installed.

July 2005

Sakhalin Energy enters into an LNG sales agreement with Korea Gas Corporation (KOGAS).

The Lunskoye-A (LUN-A) concrete gravity base structure installed.

June 2005

Sakhalin Energy signs heads of agreement with Tohoku Electric Power Company Inc. for LNG sales.

February 2005

Sakhalin Energy signs heads of agreement with Korea Gas Corporation (KOGAS) for LNG sales.

November 2004

Sakhalin Energy delivers the first crude oil cargo to Tohoku Electric Power in Japan.

Sakhalin Energy enters into a long-term charter of two new-built LNG ships with a consortium consisting of Nippon Yusen Kabushiki Kaisha (NYK) and OAO Sovkomflot and enters into a long-term charter of one new-built LNG ship with another Russian-Japanese consortium consisting of Mitsui O.S.K. Lines (MOL), Kawasaki Kisen Kaisha (K Line) and OAO Primorsk Shipping Corporation. These deals represent Russia’s first entry into the LNG shipping business.

October 2004

Sakhalin Energy enters into a pioneering deal to supply LNG to Shell Eastern Trading Ltd. for North American markets. The deal represents the first sales of Russian natural gas to North America.

June 2004

Sakhalin Energy signs an LNG sale and purchase agreement with Kyushu Electric.

March 2004

Sakhalin Energy signs heads of agreement, a major LNG sales deal, with Toho Gas.

January 2004

The First Weld event—official commencement of the TransSakhalin pipeline system construction.

December 2003

Phase 2 Feasibility Study approved by the GlavGosExpertiza.

July 2003

Sakhalin Energy signs heads of agreement with Kyushu Electric.

Phase 2 Feasibility Study approved by the Russian State Environmental Review body.

May 2003

Sakhalin Energy signs heads of agreement for LNG sales with Tokyo Gas.

Full development of Piltun-Astokhskoye and Lunskoye fields starts.

Sakhalin Energy signs heads of agreement for LNG sales with Tokyo Electric.

October 2002

Phase 2 Feasibility Study developed by Sakhalin Energy and submitted for review to the Russian State Environmental Review body.

June 2002

Phase 2 Feasibility Study developed by Sakhalin Energy and submitted for review to GlavGosExpertiza.

December 2001

Sakhalin Energy publishes the Preliminary Phase 2 Environmental Impact Assessment and conducts local public hearings.

August 2001

Sakhalin Energy launches a tender for a contractor for the proposed LNG plant and oil export facilities.

June 2001

Phase 2 Development Plan approved by the Supervisory Board.

December 2000

The shareholding structure of Sakhalin Energy becomes as follows: Royal Dutch Shell plc. (55%), Mitsui & Co., Ltd. (25%) and Mitsubishi Corporation (20%).

May 2000

Sakhalin Energy moves its corporate office to Yuzhno-Sakhalinsk.

September 1999

Export of first crude oil cargo.

July 1999

First production at the Piltun-Astokhskoye field—Russia’s first offshore oil production.

February 1999

Russia adopts changes to laws following enactment of the PSA law.

September 1998

Molikpaq production platform installed at the Piltun-Astokhskoye field, following refurbishment in South Korea.

June 1998

Phase 1 Feasibility Study approved by the Russian State Environmental Review body.

April 1998

Phase 1 Feasibility Study approved by the GlavGosExpertiza.

January 1998

Phase 1 Feasibility Study submitted for review to the Russian State Environmental Review body.

December 1997

Phase 1 Feasibility Study submitted for review to GlavGosExpertiza (Russian State Expert body).

July 1997

Phase 1 Development Plan approved by the Supervisory Board.

April 1997

McDermott sells its shareholding in Sakhalin Energy to other shareholders, resulting in the following shareholding structure: Marathon (37.5%), Mitsui and Shell (25% each) and Diamond Gas—Mitsubishi (12.5%).

July 1996

The Russian Party (Russia’s Government and the Sakhalin Oblast Administration) approves Phase 1 Development Plan.

June 1996

Appraisal work begins at the Piltun-Astokhskoye and Lunskoye fields.

May 1996

The Russian Federation issues licences to Sakhalin Energy for the Piltun-Astokhskoye and Lunskoye fields.

January 1996

Enactment of the Russian Federal Law on Production Sharing Agreements.

June 1994

A production sharing agreement with respect to Piltun-Astokhskoye and Lunskoye fields is signed on June 22 by the Russian Federation, the Sakhalin Oblast Administration and Sakhalin Energy.

April 1994

MMMMS Consortium establishes Sakhalin Energy Investment Company Ltd. (Sakhalin Energy).

March 1993

Approval of the feasibility studies by the Russian Federation.

December 1992

Mitsubishi joins the Consortium—now the MMMMS Consortium. The feasibility study is submitted for review to the regulatory bodies of the Russian Federation.

September 1992

Shell joins the MMM consortium (renamed MMMS).

April 1992

MMM starts to conduct the feasibility study.

March 1992

A feasibility study agreement for the evaluation of Piltun-Astokhskoye and Lunskoye fields is signed by the Marathon, McDermott and Mitsui (MMM) Consortium and the Russian Federation.


The USSR announces an international tender for the right to conduct a feasibility study for the development of the Piltun-Astokhskoye and Lunskoye licence blocks, a project which later becomes known as Sakhalin II.


Discovery of the offshore Piltun-Astokhskoye field in the north east of Sakhalin.


Discovery of the offshore Lunskoye field in the north east of Sakhalin.