Sakhalin-1 Project: Delivering Excellence in Project Execution

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Case Details:

Case Code : OPER093
Case Length : 26 Pages
Period : 1993-2009
Organization : Exxon Neftegas Limited / Sakhalin-1 consortium
Pub Date : 2010
Teaching Note :Not Available
Countries : Russia
Industry : Oil & Gas Industry

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Project Benefits

According to experts, the Sakhalin-1 Project was one of the biggest projects developed by the international oil and gas industry. It represented one of the largest single FDIs in Russia managed by a multinational consortium. According to analysts, the Sakhalin-1 Project had helped Russia in strengthening its position as an energy supplier to world markets by providing oil and gas supplies for export to domestic and commercial markets...


Experts considered the Sakhalin-I Project to be a multifaceted engineering project as it posed some of the most difficult challenges that the oil and gas industry had faced anywhere in the world. The project faced both environmental as well as manmade problems...


After completing its first phase, the project moved on to the next phase which was to develop oil and gas from the Odoptu field. According to the project consortium, experience gained during the first phase including ERD, logistics, winter work productivity, contracting strategies and Russian contractor expertise, regulatory processes and design criteria would be used to carry out the subsequent phase of the project. Future phases of the Sakhalin-1 Project would include developing the Arkutun-Dagi fields, expanding the Chayvo OPF, and further developing the Chayvo gas field...


Exhibit I: The Sakhalin Blocks (May 2008)
Exhibit II: List of Contracts Awarded for Sakhalin-1 Project
Exhibit III: Route Map of Sakhalin-1 Project
Exhibit IV: Accomplishments of Sakhalin-1 project
Exhibit V: Sakhalin-1 Project: Community Development Initiatives
Exhibit VI: Future Phases of the Sakhalin-1 Project


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