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Sakhalin Energy & Petrofac Sign a Contract for Construction of a New Facility

Source: 9/6/2017, Location: Asia

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During Eastern Economic Forum, Sakhalin Energy and Petrofac Facilities Management Limited (Petrofac) signed a contract for the front-end compression station construction on Sakhalin-2 project onshore processing facility (OPF) on Sakhalin Island. The project comprises engineering, procurement, offshore fabrication, construction and site services.

The scope of work includes inlet separation and feed gas compression facilities, a new flare system, utilities, substations and associated buildings, a temporary beach landing facility, refurbishment of the previously utilised camp, temporary site facilities for Sakhalin Energy and Petrofac, as well as brownfield tie-ins and integration into the existing OPF. With early engineering work already underway, the project is expected to be completed in 2022 and will support Sakhalin Energy in maintaining its sustainable LNG capacity.

At the signing ceremony Roman Dashkov, Chief Executive Officer of Sakhalin Energy, said: “Today we have signed a milestone contract for Sakhalin-2 project. The highest standards, we promote in our company, are compliant with international regulations and lenders’ requirements; they are supported by our shareholders. That is why we chose to sign a contract with Petrofac, one of the world’s industry leaders, that has vast experience in design and construction of oil and gas infrastructure.

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 contact 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”.

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