Terminal problems delay Sakhalin-1 oil exports

Sept. 27, 2006
The head of Russia's Federal Service for Ecological, Technological, and Nuclear Monitoring announced that Exxon Neftegas Ltd., operator of the Sakhalin-1 project, will not be able start shipping Sakhalin oil for export until it has satisfied objections regarding construction of the oil terminal in the port of Dekastri.

Eric Watkins
Senior Correspondent

LOS ANGELES, Sept. 27 -- The head of Russia's Federal Service for Ecological, Technological, and Nuclear Monitoring announced that Exxon Neftegas Ltd., operator of the Sakhalin-1 project, will not be able start shipping Sakhalin oil for export until it has satisfied objections regarding construction of the oil terminal in the port of Dekastri.

"In violation of the law, the Dekastri oil terminal was being built in accordance with adjustments and additions made in the feasibility study before they were confirmed by experts in industrial safety," said Konstantin Pulikovskiy. "There are problems. One could open the terminal, but the problems must be resolved."

Pulikovskiy said he hoped the consortium developing the Sakhalin-1 project would correct the violations made during the construction of the Dekastri oil terminal in Khabarovsk Territory before the start of oil exports, scheduled for early October.

"We'll work to keep up with the schedule. The project is in place and must be implemented," Pulikovsky said when asked whether the problems could be resolved before the start of first exports. Two, 100,000-tonne tanks in Dekastri are reported to have been filled with crude oil ready for export.

Contact Eric Watkins at [email protected].