Abstract

The Piltun integrated oil and gas development is a part of the Sakhalin-2 Phase 2 project, and provides a significant portion of Sakhalin Energy's annual revenue through the development of the Northern part of the massive Piltun-Astokhskoye field. This offshore field was discovered in 1986, off the coast of Sakhalin Island, in Russia's Far East. This remote field is in an environmentally sensitive area with an extreme “sub-arctic” climate and a history of seismic activity. The easier part of the field (“Astokh”) was developed first with seasonal production, making it Russia's first offshore oil development, but the multilayered Piltun area retained a significant degree of uncertainty and required a different development approach. First oil was achieved in 2008 and within one year the development produced its 10 millionth barrel of oil, and was benchmarked as “best in class” on drilling performance and recorded a number of “firsts” in the Russian Oil and Gas Industry with its initial smart water injector well.

This paper provides an overview of the challenges of developing this field, the successful reduction of major uncertainties and the multi-disciplinary approaches and use of technology that ensured an extremely successful first start-up of operations.

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