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Shell announces production at Sakhalin

YUZHNO-SAKHALINSK, Russia, Dec. 15 (UPI) -- Production facilities at Aniva Bay in the south of Russia's Sakhalin Island in the North Pacific began year-round exports, Royal Dutch Shell said.

Shell said production in the south of Sakhalin near the Prigorodnoye port started last week for the export of oil and liquefied natural gas on a year-round basis.

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Production capabilities were realized through a trans-Sakhalin pipeline system that connects offshore platforms with facilities in the south of the island, Shell said.

Shell owns a 27.5 percent stake in the Sakhalin Energy venture, with Russian energy monopoly Gazprom holding a 50 percent plus one share. Japan's Mitsui & Co. Ltd. holds 12.5 percent and Mitsubishi claims the remaining 10 percent.

"Today's achievement is the result of the dedicated work of tens of thousands of people, and it marks a new chapter in the development of the Sakhalin Island," said Sakhalin Energy chief Ian Craig.

Production at the facility, Sakhalin II, will bring a boost to Russia's growing influence in world energy markets, Shell said.

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