REFILE-Exxon’s Russian Sakhalin-1 seeks budget of $100 bln-paper

(fixes typo in headline)

* Sakhalin-1 operates under production sharing agreement

* Exxon says updated budget may include some change

* Russian government must agree to all budget changes

MOSCOW, Oct 14 (BestGrowthStock) – The ExxonMobil-led (XOM.N: )
Sakhalin-1 offshore oil project in Russia’s far east is looking
to double its budget to $100 billion, Russian business daily
Vedomosti reported Thursday citing unnamed government officials.

The paper said Exxon Neftegas Limited (ENL), asked for its
capital expenditure for the project to rise to $47.9 billion and
operational expenses to $52.2 billion in a document being
reviewed by an authorised governmental body.

Sakhalin-1, in which Russia’s state-owned oil producer,
Rosneft (ROSN.MM: ) has a 20 percent stake, operates under a
production-sharing agreement (PSA) with the Russian government,
which must approve its budget and expenditure.

“We haven’t seen these figures, and don’t know where they
come from,” Margarita Tsoi, ENL’s vice president for public
affairs told Reuters.

She also said ENL hoped the government body in charge of
approving the project’s expenditure would make a decision on its
updated budget for the Sakhlain-1 soon.

“It may include a different inflation coefficient and take
into account the rise in the price of services, which has
objectively happenned,” said Tsoi.

Sakhalin-1 launched the second of its three offshore oil
fields, Odoptu, which will produce 30,000 barrels per day (bpd)
in 2011. Total output at Sakhalin-1 expected for next year is
156,000 bpd. [ID:nLDE68R103]

Sakhalin’s fields were the first tapped by Russia to meet
rising demand in the Asia-Pacific region and are now the focus
of much of the country’s investment in new oil and gas

(Reporting by Jessica Bachman;; editing by Elizabeth

REFILE-Exxon’s Russian Sakhalin-1 seeks budget of $100 bln-paper