Rosneft sues Sakhalin-1 over North Chayvo

Rosneft has filed a $1.4-billion lawsuit against the Sakhalin-1 consortium operated by Exxon Neftegas Ltd. in an apparent dispute over drainage of Northern Chayvo oil and gas field. The Russian company began production from the offshore field, which is adjacent to the Sakhalin-1 concession, in September 2014.
July 25, 2018

Rosneft has filed a $1.4-billion lawsuit against the Sakhalin-1 consortium operated by Exxon Neftegas Ltd. in an apparent dispute over drainage of Northern Chayvo oil and gas field.

The Russian company began production from the offshore field, which is adjacent to the Sakhalin-1 concession, in September 2014. Its design plateau production rate is about 30,000 b/d of oil from five wells drilled directionally from onshore locations.

According to Reuters, Rosneft field suit in a Sakhalin district arbitration court accusing the consortium of “unjust enrichment,” which the consortium denied.

Court documents reviewed by Reuters mentioned “cross-flows” from Northern Chayvo.

The main Chayvo field is one of three offshore reservoirs productive at Sakhalin-1, where total output is believed to be limited by Russian authorities to about 200,000 b/d of oil.

Sakhalin-1 interests are Exxon Neftegas and the SODECO consortium of Japan, 30% each, and Rosneft (through two affiliates) and ONGC Videsh Ltd. of India, 20% each.

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