Japanese banks back Sakhalin-I Odoptu field stage-2 project in Russia
Sakhalin Oil and Gas Development (SODECO) has secured $450m financing from Japan Bank for International (JBIC) to fund the second development stage of the Sakhalin-I Odoptu field project in Russia.
The firm said it has also secured financing from Mizuho Bank, Sumitomo Mitsui Banking, and Sumitomo Mitsui Trust Bank, taking the total co-financing amount to $900m.
The loan will be used by Sakhalin to fund the Sakhalin-I Odoptu field stage-2 development, in which SODECO has30% participating stake. The project is expected to contribute to the energy supply diversification in Japan.
Sakhalin Oil and Gas Development is a joint venture between the Minister of Economy, Trade and Industry, Japan Petroleum Exploration (JAPEX), Itochu, Marubeni, Inpex and Itochu Oil Exploration.
Exxon Neftegas operates the Sakhalin 1 project with 30% stake while other partners include Rosneft-RN Astra with 8.5% interest, Sakhalinmorneftegas-Shelf 11.5% and ONGC Videsh 20%.
The Sakhalin-I project involves development and production of petroleum and natural gas from the Chayvo, Odoptu, and Arkutun-Dagi oil and gas fields located off the northeast coast of Sakhalin Island in the Russian Far East.
ExxonMobil estimates the fields to hold potential recoverable resources of 2.3 billion barrels of oil and 485 billion cubic meters of gas.
Since commencement of production in 2006, the project has offloaded over 550 million barrels of crude oil.
Expected to continue production through to 2050, the project's total investment is estimated to be approximately $10bn to $12bn.
Image: The Sakhalin-1 Odoptu field in Russia. Photo: courtesy of Exxon Neftegas Limited.