Energy related projects in the north-east Asia

Transcription

1 Energy related projects in the north-east Asia Outline There are various Energy related projects in the northeast Asia. In today s my presentation, The projects which purport to develop the oil & gas in the north-east Asia by the Japanese companies under the support of the Japanese government will be selected as a theme. After reviewing the main two projects such as Sakhalin I and II,understanding the status quo of the projects and clarifying the characteristic of the projects are intended. If possible, the influence on Japan by the said projects is commented. 1

2 The following contents are constituted by the published informations and the data from the operating companies of the projects. The below mentioned three projects which are participated by the Japanese companies under the support of the Japanese government are as follows : 1.Sakhalin I project 2.Sakhalin II project 3.Development of oil in the east-siberia with the installation of international pipeline 2

3 In addition to the above main projects, the exploration project at the joint developing area in the continental shelf between Japan and Korea and the oil developing project at the offshore of the Pearl river, China are ongoing. Sakhalin I and II projects are summed up from the next page. 3

4 Sakhalin I and II projects Sakhalin island in Russia is located very near to Japan and has a large scale of natural gas reserves. Now, around Sakhalin Island, there are 9 blocks for exploration. Japan has participated in developing the Sakhalin oil and gas resources through the following projects. 4

5 - Sakhalin I project (consortium) Exxon-Mobil ONGC Rosneft Rosneft-Sakhalin morneftgas Sakhalin oil and gas developing co.,ltd. Total estimated investment amount: Total estimated recoverable reserves: (Exxon Neftegas Ltd.) (ONGC Videsh,Ltd. India) (RN-Astra, Russia) (Sakhalin morneftgasshelf,russia) (JNOC 50%, Japex 14.12%, C.I %, Marubeni 11.41%, Inpex 4.21%, CIECO 3.57%,Imperial Oil 1.44%,Cosmo Oil 1.13% ) 12 billion US dollars Oil and condensate 2.3 billion bbls Natural gas 17 trillion cf 30% 20% 8.5% 11.5% 30% 5

6 The Sakhalin I project is one of the biggest oil and gas development projects located on the northeast shelf of Sakhalin Island, water depth is 10 to 60 meters and the thick ice covers the area 6 to 7 months a year.the project was declared as commercial in October, Total recoverable reserves are estimated at 2.3 billion bbls of oil and 17 trillion cubic feet of natural gas.this project consists of three fields, Chayoo, Odoptu and Arkutun-Dagi, which are currently planned to develop in phases 1 to 4, using both offshore and onshore wells. Many of these wells will be drilled using a new drilling technique called ERD (extended reach drilling), which allows oil and gas targets to be drilled by the rig 6 located a great distance away.

7 The first phase of development is focusing on the oil production of Chayoo and Odoptu fields, and the start of the oil production from Chayoo field is scheduled at the end of The oil will be transported through the pipeline to the marine tanker terminal at Dekastri. Large marine tankers will be escorted by icebreakers using a new developed ice passport concept, which would be enable to operate for a whole year. These advanced technologies will be applied significantly to reduce the overall cost of development and to minimize environmental impact. 7

8 - Sakhalin II project R.D.Shell Mitsui & Co., Ltd. Mitsubishi corporation Total estimated investment amount: Total estimated recoverable reserves: 55% 25% 20% 10 billion US Dollars Oil and condensate 1.05 billion bls Natural gas 15 trillion cf - Sakhalin Energy Investment Company Ltd was established by the above three companies for actual consortium operation. 8

9 This project is scheduled to supply gas as LNG from 2006 and as for the oil, the project has started the production of oil from July, 1999, at present, they can produce at the peak of 90 MBD (from May to December). Phase 1 which is the first and biggest oil developing project at offshore of Russia has been smoothly progressed while satisfying the set-up of earthquake and ice - proof platform, standards of environmental protection and safety operation. Phase 1 has achieved early start of crude oil production by using floating storage & offloading system and the said platform. 9

10 Phase 2 purports to developing the gas and oil as well but mainly concentrates on the LNG project which is attained by the gas production and export of 9,600 thousand ton/year. The concrete plan shows that the LNG plant and loading facilities shall be installed at Prigorodnoe, the south point of Sakhalin and also the 800 km pipeline from the LNG plant to the production platform located at offshore of the north - east of Sakhalin island be installed. 10

11 Special features of this Sakhalin II project are described as follows: (1) Challenge to the first attempt in Russia (Conclusion of PSA, the big size of offshore oil and gas development and LNG project) (2) Severe weather condition (drift ice, earthquake, cold area) (3) High standard of technical power (ERD, completion of high- productivity gas well, earthquake and ice- proof platform, specifications for cold area, obligation on the environmental protection regulation) (4) Tackling the installation of infrastructure (roads, harbors, laws, supply from distant points) 11

12 The characteristics of the said two projects to be considered 1.Both Sakhalin I and II are giant projects where Japanese companies associate with the majors such as Exxonmobile and R.D.Shell instead of pure Japanese consortium. 2.In the north-east Asia, Sakhalin I and II have ever implemented as the biggest projects in which Japanese companies participate except the past project performed by Japan China Oil Development Co.,Ltd. in Bokai. 3. Sakhalin I and II are gas developing projects rather than oil developing ones. As for the transporting the gas, each project is expected to utilize each method (Sakhalin I : pipeline, Sakhalin II :LNG tanker) 12

13 4.The supply of oil and gas can be done from the area very close to Japan and also supply volume deems to be enormous. The supply from Sakhalin I and II as well as possible additional supply from the east-siberia oil shall realize the diminishment of the dependence ratio on the middle-east area in terms of stable energy supply. 5.The existence of Sakhalin oil will support the price negotiation with the middle-eastern crude oil sellers. 6.The Sakhalin I and II are the first and giant projects for developing natural gas by the majors in the north-east Asia. These projects are the touchstone which can testify the majors to be allround energy corporation instead of oil based one. 13

14 Influence and implication to Japan 1.If the supply of natural gas which has less burden on the environment will be done to Japan through the pipeline and LNG chain, it would create the diversity of gas utilization and promote the gas shift movement in the energy source. 2.While the middle-east area is still important supply source of oil and gas in terms of productivity and reserves, Sakhalin I and II will be surely the sign of realizing the diversity of supply source of the hydrocarbon energy, which is used to be happened by the past appearance of the north sea and the Alaska areas. The oil and gas local market in the north-east Asia shall be probably established sooner or later. 14

15 3.In case the installation of international gas pipelines to Japan is well arranged in addition to import by LNG, the trunk pipelines net work shall be expected to establish in Japan, which will promote the diversity of gas utilization. 4.The appearance of Sakhalin crude and Russian crude of Siberia to the north-east market will be a strong bargaining power against price negotiation with the middle-eastern crude oil suppliers. There is a possibility to diminish the Asian premium on the exporting price of crude oil to Asian countries. November 6, 2003 Taro Shoji Japan Petroleum Development Association 15

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