Sakhalin 1 consortium awards Chayvo, Odoptu EPC contract

Exxon Neftegas Ltd let a $987 million contract to ABB Lummus Global for the engineering, procurement, and construction of the Chayvo and Odoptu onshore processing and well site support facilities.

By OGJ editors

HOUSTON, Aug. 7 -- Exxon Neftegas Ltd., a unit of ExxonMobil Corp. and operator for the Sakhalin 1 consortium, let a $987 million contract to ABB Lummus Global for the engineering, procurement, and construction of the Chayvo and Odoptu onshore processing and well site support facilities for the Sakhalin 1 project off the east coast of mainland Russia.

Under the contract, ABB will provide detailed engineering and design, procure equipment and materials, and subcontract construction of the facilities, which will comprise two onshore production facilities and support facilities for three land-based well sites. A majority of the work, ABB said, will be subcontracted out to Russian companies. ABB said it would address several technical issues with this project, including the harsh arctic environment, international supply, and transportation logistics with a "narrow weather window" for construction (OGJ, June 17, 2002, p. 41).

The Sakhalin 1 project, which is being developed in four phases, is expected to reach first oil production from Chayvo field by yearend 2005. Consortium members are Exxon, Sakhalin Oil & Gas Development Co. Ltd., ONGC Videsh Ltd., Sakhalinmorneftegas-Shelf, and RN-Astra.

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