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Petrofac wins $700m contract for Sakhalin Energy’s gas processing facility in Russian island

EBR Staff Writer Published 07 September 2017

Petrofac has bagged a contract worth over $700m from Sakhalin Energy Investment Company related to the Russian company’s onshore processing facility (OPF) on Sakhalin Island.

As part of the contract, the Jersey-based oilfield services provider will provide the Sakhalin-2 project OPF with engineering, procurement, offshore fabrication, construction and site services.

The Sakhalin-2 project OPF, which is located on the Russian island in the Pacific Ocean, primarily processes gas and condensate procured from the Lunskoye field.

Included in the scope of Petrofac’s work are inlet separation and feed gas compression facilities, substations and associated buildings, a new flare system, temporary site facilities and brownfield tie-ins for the existing OPF among others.

Petrofac engineering & construction growth business group managing director Sunder Kalyanam said: “Sakhalin Island is a very familiar location for Petrofac as our Sakhalin Technical Training Centre (STTC), established in 2008, has been helping meet increased local demand for competent personnel specialising in the oil and gas industry.

“From STTC we are able to supply a wide range of technical support services including front-end engineering and design, pre-commissioning and commissioning, operations and maintenance as well as technical manpower support.”

Petrofac’s work is expected to support the Russian firm in maintaining its sustainable LNG capacity with early engineering work already in progress. The project is slated to be completed in 2022 and it marks the tenth project work for Petrofac, which has been executing projects in Russia since the 1990s.

According to Sakhalin Energy CEO Roman Dashkov, Petrofac was chosen for the contract for Sakhalin-2 project in compliance with international regulations and lenders’ requirements. 

Dashkov added: “Also, another key contributor to this decision was the high level of Russian content in the contract.

“Russian enterprises will be involved in development of project design documentation, construction works, and procurement of compressors, separators and heat exchangers. Signing of this contract and execution of relevant works will give new work places and additional taxes; it will ensure sharing new technologies and unique experience with the international company, also development of Russian content”.


Image: At the signing ceremony of the contract between Sakhalin Energy and Petrofac. Photo: courtesy of SAKHALIN ENERGY.