Reuters Summit-Russia Sakhalin-1 production to get boost-Japex

(For other news from the Reuters Global Energy Summit, click
on http://www.reuters.com/summit/GlobalEnergy10?pid=500)

TOKYO, May 25 (BestGrowthStock) – Production from Russia’s Far East
Sakhalin-1 oil project will get a boost of 30,000 barrels per
day (bpd) after the second of three fields included in the
project reaches peak next year, a stakeholder said on Tuesday.

Crude production from the Odoptu field, slated to start in
second-half 2010, will add to output at the current sole
producing Chayvo field, Osamu Watanabe, President of Japan
Petroleum Exploration (Japex) (1662.T: ) said at the Reuters
Global Energy Summit in Tokyo.

Production from the Chayvo oilfield is expected to fall to
around 150,000 bpd in 2010, down from about 165,000 bpd in
2009, as production steadily declines after peaking earlier
this decade.

The Sakhalin-1 project includes the phased development of
three fields with an estimated total resource of 2.3 billion
barrels (307 million tonnes) of oil and 17 trillion cubic feet
(485 billion cubic metres) of natural gas.

The third field in the development, Arkutan-Dagi, is
expected to start production by 2014 and is believed to have
peak capacity output of about 80,000 bpd, but nothing has been
finalised, Watanabe said.

Japex is a stakeholder in Japan’s Sakhalin Oil and Gas
Development Co Ltd (Sodeco), which along with field operator
Exxon Mobil (XOM.N: ), each hold a 30 percent stake in
Sakahalin-1.

Indian and Russian firms hold the remaining 40 percent.

Japex has a little more than 14 percent of Sodeco, which is
half owned by the Japanese government and includes trading
houses Itochu (8001.T: ) and Marubeni (8002.T: ) among its
stakeholders.

Light sweet Sokol crude is exported from the Sakahalin-1
project.

Stock Market Investing
(Reporting by James Topham; Editing by Ed Lane and Ramthan
Hussain)

Reuters Summit-Russia Sakhalin-1 production to get boost-Japex