#1• ЭНЕРГИЯ SAKHALIN ENERGY Sakhalin II Project Update Presentation at the seminar "Tasks and Strategies for Energy Cooperation between Russia and Korea after the Summit Talk in September". Viktor Snegir Deputy General Manager Commercial Sakhalin Energy Investment Company Ltd. 17th December 2004#2Sakhalin Shelf: Hydrocarbons in Place IV Sakhalin 4) Shmidtovský Block Sakhalin 5 East-Shmidtovsky Block Sakhalin 4 Astrakhansky Block V 20% 14% GAS-IN-PLACE ( 196 Tcf) 4% 0 10% Sakhalin I 12% Sakhalin II Sakhalin III Sakhalin IV Sakhalin V BOE In-Place (94,300 MMboe) 0.5% 1% Sakhalin VI 2% 11.5% 6% Sakhalin VII Sakhalin VIII Sakhalin IX 40% OIL-IN-PLACE (60,500 MMbbls) 3% 0.5% 34% САХАЛИНСКАЯ SAKHALIN 7% МЕРТИЯ ENERGY 8% 1.5% 13% 7% 26% 29% 10% Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC MIHO layCH- па-Атиго Russia Alehandrovch- Bakhalin chly 9% VI 31% IX->> Khalm ch Sakhalin 1 Sakhalin ast-Odoptu bačk Sakhalin 2 Sakhalin 3 Ayashsky Blod Veninsky Bl Sakhalin Island Sakhalin 3 Kirinsky al Sakhalin 6 Pogranichny Block Paronych -Wysh O Arca vo VII 2 III VI#3Sakhalin Energy (SEIC) - PSA Structure # STA HASE Shell Petroleum NV Russian Federation Sakhalin Oblast 100% Mitsui & Co. Ltd 100% Mitsubishi Corp. 100% Shell Sakhalin Holdings B.V. Mitsui Sakhalin Diamond Gas 55% Holdings B.V. 25% Sakhalin B.V. 20% Production Sharing Shareholders Agreement (1994) Agreement Supervisory Board SAKHALIN ЭНЕРГИЯ ENERGY Sakhalin Energy Investment Company Ltd. Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 3#4СТАЛИНСКАЯ SAKHALIN Sakhalin II Hydrocarbon Resources GULF OF SAKHALIN TATAR STRAIT Okha Nogliki Odoptu Chaivo D 0 Piltun- Astokhskoye Arkutun Dagi SEA OF OKHOTSK P 2 Large Fields located off shore North East Sakhalin PA is an oil field with associated gas. Lunskoye is a gas field with condensate Total in place volume is 4.2 billion barrels of oil and 24 TCF of gas Recoverable reserves are 1 billion barrels of oil and 18 TCF of gas. This is enough to supply 10 MTPA of LNG for 25 years Sakhalin Island Sakhalin | Project Area Exxon/Sodeco Sakhalin II Project Area Sakhalin Energy Sakhalin III Award Areas Exxon Mobil/Texaco НЕРГИЯ ENERGY Lunskoye 0 MILES 30 Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 4 # STA HASE#5САХАЛИНСКАЯ SAKHALIN Sakhalin II Project - Phase 1 Vityaz Complex: 60-70,000b/d oil production for a six month summer season from the Astokh feature, utilizing Molikpaq and FSO. АЛЕРГИЯ NERGY Molikpag Export Tanker Floating Offloading Hose Subsea Pipeline FSO Tanker Submarine Riser FSO SALM Buoy SALM Pibd Mooring Bass Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 5 # STA HASE#6Supplying crude oil to customers since 1999 SAKHALIN More than half of crude oil produced since 1999 was exported to Korea. Buyers: SK Corp, LG Caltex, Hyunday. Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC СЕРГИЯ NERGY SAKH # ALAN STA HASE 6#7SAKHALIN АЛЕРГИЯ ENERGY laure TATAR STRAIT Phase 2 of the Project: A Four Year Challenge Suba Miky Hysh SEA OF DKHOTSK OFF to DET 630 SAKHALIN ISLAND Gas Compression Station Ne 2 O Booster Station No. 2 SEA OF JAPAN PA-A SEA OF OKHOTS PACIFIC OCEA Detail 1 Piltun -B platform PA-B Gas Line Oil Line PA-A Gas Line Detail 2 Oil Line Omplire Stabilization Facility Lan-A ➤ Astokh year round production Lunskoye-A platform Onshore processing facility Oil and gas pipelines ➤ LNG plant and export terminal Detail 3 Gas Line LNG Plant Oil Line LNG Tanker Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Oil Export Terminal Loading Line Tanker of Opportunity 7 # STA HASE#8A Globally Integrated Team Aker Kvaerner (Norway) CGBS design Starstroi (Russia) Onshore Pipeline Design SHI (South Korea) Topsides Construction CTSD (Japan) LNG design AMEC (UK) Topsides Design Saipem (Italy) AKQuattrogemini (Russia) Offshore Pipeline Design CGBS Construction Parsons (UK) OPF Design ABB (Holland) NSC (Holland) MTI Design TLU design CARANWHCH SAKHALIN AR СЕРГИЯ NERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 8#9Offshore platforms • Lunskoye 4 leg concrete gravity base. Topsides 22,000 tonnes. Gas production 1800 mmscf/d 30 well slots. Possible oil rim production. • Piltun 4 leg concrete gravity base. Topsides 28,000 tonnes. Oil production 70,000 b/d. Gas production 92 mmscf/d. 45 well slots. CARANWHICH SAKHALIN ЭНЕРГИЯ ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 9 # STA HASE#10Vostochny Port - CGBS Site ALIN END STANWHI STA#11CGBS - Concrete Gravity Base Structure Ready for tow out: CARANWHICH SAKHALIN ЧЕРГИЯ ENERGY CGBS LUN-A 1st June 2005 Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC CGBS PA-B 1st July 2005 11 # STA HASE#12Lunskoye GBS - First Leg Completed - October 22nd CARANWHICH SAKHALIN ЛЕРГИЯ ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 0000000 12 XAM STA HASE#130000000 Aleksey Savinov 2004#14Tow to Offshore Location RUS TOWING ROUTE TO FIELD PA-B Amur LUN-A of • wtsk • Blagoveshchensk Khabarovsk Birobidzhan Qiqihar Yuzhno-Sakhalinsk HEILONGJIANG Harbin Vostochny, JILIN angchun 回 Jin Shenyang Casting Basin Sapporo Vladivostok Chongjin Sea of Japan an Kanggye NORTH KOREA (East Sea) yongyang O Wŏnsan Haeju Seoul dao OH Tokyo Taegu 回 ☐ Kwangju Kyoto Nagoya Pusan SOUTH KOREA JAPAN АЛИН anghai SAKHALIN НЕРГИЯ ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC LUN-A • Towing distance 960 nm. ⚫ Duration of tow 16 days. • 3 Tugs, each of 150 Tonnes. 1 Tug to assist during tow. PA-B •Towing distance ≈ 1020 nm. ⚫ Duration of tow 17 days. • • 3 Tugs, each of 150 Tonnes. . 1 Tug to assist during tow. Milestone 5 LUN-A, install 15th July 2005. Milestone 6 PA-B, install 15th September 2005. 14 # STA HASE#15Concrete Gravity Structure Tow & Installation Process May 2000 # SAKHALIN STA HASE 2nd June 2000 1st June 2000#16Lunskoye Topsides Status CARARWICHAN SAKHALIN АЛЕРГИЯ ENERGY Setting 1st UD Block - 7th July 2004 Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 16 ASTARWA # TA EASE#17Piltun-B - Status САХАЛИНСКАЯ SAKHALIN АЛЕРГИЯ ENERGY PAB Lower Deck Block LD 21 - Turn Over Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 17 # TA HASE#18Piltun-B - Status SAKHALIN СЕРГИЯ ENERGY PA-B Lower Deck Block LD-12-13-14 & 21 assembly. Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC # STA HASE 18#19Molikpaq Platform (Piltun-A) CARAMANICKAR SAKHALIN АЛЕРГИЯ ENERGY MOLIKPAC # Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 19 STAL HASE#201 OPF - View to the North East T#21OPF - View Looking North CMAMN CHAR SAKHALIN ЧЕРГИЯ ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 21 # STA HASE#22OPF - Status Piperack Erection НЕРГИЯ Gas/Liquid Exchanger onto Foundations. SAKHALIN ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Condensate Tank 22 # STA HASE#23Offshore Pipelines - Status # CMAMN CHAR SAKHALIN ENERGY ЭНЕРГИЯ Sakhalin Energy Lunskoye and Piltun Landfall Cofferdams - June 2004 THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC STA 23#24Offshore Pipelines - Status Lunskoye Landfall Cofferdam with Pull-heads САХАЛИНСКАЯ SAKHALIN HEPIMA ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC # STA HASE 24 24#25Onshore Pipelines - Status SAKHALIN ЭНЕРГИЯ ENERGY Lowering at KP 589 # STA HASE Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 25#26Plant Site Overview Utility Train 1 LNG Tank CAVANINCHAR SAKHALIN ЭНЕРГИЯ ENERGY Train 2 LNG Jetty Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC CASTARWI OET MOF 26 # TA PHASE#27210巷#28CARANWHICH SAKHALIN ИНЕРГИЯ ENERGY Overall Phase 2 Status Phase II Construction is currently 50% complete ➤ Both oil & gas pipelines under construction Finished construction facilities and foundation work at the OPF and work has started on import of equipment and construction of main OPF facilities Construction of main LNG Plant components is underway ➤ Main steel structures of platforms under construction GBS platforms on schedule for tow-out in summer 2005 Monthly spend is in the order of $250 million Approximately 13,000 contractors (expat, local and Russians from the mainland) are now working on the Island 1st LNG Delivery Date remains 1 November 2007 Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 28 # STA HASE#29First four Japanese Customers BORYATIA CHIT MONGOLIA INNER MONGOLIA RUSSIA M-UR KHABAROVSK Khabarovsk HEILONGJIANG Qiqihar Yichun BIROBIJAN, Hegand Jiamusi Shuangyashan Harbin Jixi PRIMORSKIY Changchun CHINA LIAONING: Shenyang HOKKAIDO Jilin JILIN Sapporo Vladivostok Benxi 回 Chongjin Anshan NORTH KOREA Dandong Hamhung Zhangjiakou HEBEI Beijing 回 Jinzhou Tangshan Tianjin Tientsin p'yongyang 回 Seoul SOUTH KOREA ㅁ Taegu Jin 回 回 Zibo SHANDONG Qingdao Chōnju Kwangju Suchou JIANGSU Huainan Nanjing Zhenjiang uhun: Changzhou JANHUI Suzhou Shanghai 回 Hangzhou СКУАЛИНСКАЯ SAKHALIN СЕРГИЯ NERGY 東京電力 JAPAN # SAKYARIN エネルギー・フロンティア ■■TOKYO GAS 回 Tokyo 回 Ulsan Kyoto, Pusan Fukuoka Okayama, Nagoya TOHO GAS Hiroshima Kuman # KYUSHU ELECTRIC POWER CO., INC. Kagoshima Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC STA HASE 29 29#30Kyushu Electric SPA Signed; additional volume CARANWHICH SAKHALIN ЛЕРГИЯ ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 30 # STA HASE#31Tokyo Electric SPA Signed; additional volume SAKHALIN НЕРГИЯ ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC # STA HASE 31#32Sakhalin SPA with Shell Eastern Trading Signed To Supply America A Royal Dutch Shell-led group h the world's largest liquefied natu plant on Sakhalin and his line find apply deal in North Acton the upsd Thursday. Sakhin Energy, which no trading as Mi bulishid it would supply a t millen tons al supermooled gas yours to Mexico and Cattom United States Solin Energy, which opens Shalis 2 project, sed the dial a atlet blin ING will be purchased fry Sh OIL & GAS (14 October 2004) Shell first to supply Russian gas to US By James Bazell in Londen Royal Dutch/Shell has slmed a deal to supply am tonnes of liquefied natural gusto Mexion and the US west coast, in what it clodas will be the first export of Hussian gas to north Amer son. The gas, which will be sup reserves in the Hoekies The Mexican LNG plant in Baja California is being built by Sampra, the US meny truding op 1 НЕРГОРЕСУРСЫ Shell, which was a per cent of Sakhalin a niongs HM" two Japanese partners, is essentially selling the gas on to itself, under the auspices of the Shall 10 ОКТЯБРЯ 2004 ГОДА, ВТОРНИК + №№ 187 (229944 • ИЗДАЕТСЯ С 1 МАЯ 1925 ГОДА Америка закупила сахалинский газ на двадцать лет вперед Власт не поступоватые д Сообщаем подробности "Сахалин-2" прорвался в Америку Cellar upp lakad papp Tuesday m Come on AT MANEL CHELANGOR PEO Ko Sakhal оператор по про ma" shell panna my Lan to me in a bepee Mex Это первый контракт на поставку российск SOC DOOM соберат постить ми De foot open= корти ростлонно остро Контракт гриле П фрак pue par ao fo trading ORM секретаря российкой и сложеного прихо -Tokyo Gas Mata Basin. The Gay - an- 15 Актри po таком мире И. Стиг Ma LULLA Края часть тем, по- Но на порани ал. KER Cill, H. Kek. 425 Принок польше рата пре -pe Калифоров. Пос (A) Spec impr- A flo Nice $16 колум сокрове за нощно время новашния просит слету To First Russian Gas Exports to North America! САХАЛИНСК SAKHALIN AR ПЕРГИЯ ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 32#33Republic of Korea On 20th August 2004 Sakhalin Energy was invited by KOGAS (Korean Gas Corporation) to participate in the tender for long term LNG supply to Korea. ➤ Sakhalin Energy has been shortlisted as Negotiation Invitee ➤ Currently negotiating with Kogas САХАЛИНСКАЯ SAKHALIN HEPINA ENERGY KOGAS Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 33#34New LNG Terminals in China САХАЛИНСКАЯ SAKHALIN (NDRC Planned Projects) Kovykta Pipeline >2012 West- East Pipeline 7. Dalian LNG (2012) 3. Shandong LNG (2008) 6. Jiangsu LNG (2011) 4. Shanghai LNG (2009) 5. Zhejiang LNG (2010) 2. Fujian LNG (2007-08) 1. Guangdong LNG (2007) HEPINA ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC # STA HASE 34 34#35PHILIPPINES INDONESIA СТАЛИНСКАЯ SAKHALIN КЕРГИЯ NERGY KAZAKHSTAN MONGOLIA HINA Main markets for Sakhalin LNG - Japan, USWC/Mexico, Korea and China RUSSIA CANADA UNITED STATES S. KOREA JAPAN AM H Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 35 # STA HASE#36CARANWHICH SAKHALIN СЕРГИЯ А ENERGY APEC, Bangkok, October 2003 APEC CEO SUMMIT THAILAND "Russia is also prepared to make its contribution to creating a new energy configuration in the Asian and Pacific Region. For example, in 2007 it is planned to open a factory for liquifying natural gas on Sakhalin - one of the largest (LNG) factories in the world." President Vladimir Putin Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 36 # STA HASE#37SAKHALIN 45 q'0″N 120°0'0"E N.0.0.0 1.0.0. HEPTUA ENERGY LNG shipping route to South Korea 17500E 13:00 1350E 140 001 145°00'E 150°0'0"F Salchalin Energy eomatics Group Horizontal Vertical Unit Projection China North Korea מ Incheon Pyongtaek South Korea Russia 0 Tongyeong Japan 125°00'E 130 bor SEIC DATUM DEFINITION WGS 84 Ball 77 : Metars UITM 54 N Imagery Resolution 135°00 E Nominal Scale: 1:10,000,000@ A4 paper size Kilometars 0 50 100 200 300 400 500 600 700 800 Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC ב"140000 Legend Cities Shipping Routes AXA 145°0'0"E Sakhalin Island 1500 LNG Shipping Route to South Korea Author: Kostyanets, Elena. SE Doc No. Creation Date: 07 September 2014 GIS File Ref: ys_00748_p1 37 STA HASE#38With the development of the Sakhalin projects, Russia is now establishing itself as a reliable supplier of oil and gas in the Asia-Pacific. Diversification of Supply enhances Energy Security for Korea. Kogas will be the single biggest buyer of the Russian LNG once a deal is achieved. LNG from Sakhalin will also enhance Korean/Russian bilateral energy relationship for the future projects. САХАЛИНСКАЯ SAKHALIN ЭНЕРГИЯ ENERGY Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 630 38