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    Gazprom to Prioritise Local Content at Sakhalin Fields

Summary

The US imposed sanctions on one of the fields in 2015, making it harder for Gazprom to attract international partners and contractors.

by: Joe Murphy

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Gazprom to Prioritise Local Content at Sakhalin Fields

Gazprom is working with Russia's government to ensure the preferential use of domestic equipment at Yuzhno-Kirinskoye and Kirinskoye gas fields off the eastern coast of Sakhalin Island, it said on October 28.

The company is also co-operating with the ministry of industry, research institutes and machine-building enterprises on the manufacture of offshore production equipment. Under this joint work, Russia produced its first equipment prototypes for subsea production systems last year. Production of units for batch manufacturing, as well as comprehensive testing and certification procedures, will take place in 2021, the company said.

Kirinskoye and Yuzhno-Kirinskoye are among four identified fields at the Kirinsky block, which forms part of Gazprom's Sakhalin-3 project which is aimed at the domestic market in Russia. But a plan has been floated to use the gas to supply a small-scale LNG bunkering plant in Vladivostok.

Production began at Kirinskoye in 2014 and is expected to reach a plateau of 5.5bn m3/yr, while Yuzhno-Kirinkoye is yet to start up, but will flow 21bn m3/yr at peak capacity, according to Gazprom.

Development at Yuzhno-Kirinkoye was complicated after the US imposed sanctions on the project in 2015, making it harder for Gazprom to attract international partners and contractors.