Marathon Oil Co., McDermott International Inc., and Mitsui & Co. Ltd. have signed a definitive agreement to proceed with a detailed feasibility study of field development off Sakhalin Island in the Russian Far East.
The MMM group's agreement with the Ministry of Fuel and Energy of the Russian Federation covers a study of Piltun-Astokhskoye and Lunskoye oil and gas fields.
The study will be conducted in cooperation with PO Sakhalinmorneftegas, the Russian enterprise producing oil and gas in the northern part of Sakhalin Island, as well as the Sakhalin Island administration.
Findings from a study of the technical, commercial, and financial aspects of field development are to be ready by yearend. Government bodies will review the study and make a final decision on whether to commit to development.
Vladimir M. Lopukhin, minister of fuel and energy, voiced his government's "firm hope and expectation" the study will confirm feasibility of development and the MMM group will be able to negotiate terms for such a project.
He said the government expects the Sakhalin project to serve as a model for international cooperation in developing Russia's mineral resources.
Marathon Pres. Victor G. Beghini expressed confidence the MMM combine will "collaborate effectively in Sakhalin's oil and gas development, as well as improve the infrastructure and quality of life of the people of Sakhalin."
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