ABB signs contract for Sakhalin 1 project in Russia

BLOOMFIELD, NJ, April 26 -- ABB signed a contract with Exxon Nefetegas Limited, operator for the Sakhalin 1 consortium, for the front-end design on the first phase of its Sakhalin 1 project in eastern Russia. The scope of work for this contract is to prepare front-end engineering and design, generate an updated cost estimate, and prepare/issue bid packages for detailed design, procurement and construction. Key technical issues to be addressed include the arctic environment, logistics and construction planning.

The Sakhalin 1 project includes three fields located offshore of Russia's Sakhalin island, which contain significant oil and gas reserves. The first phase of the project includes onshore and offshore drilling and processing facilities, as well as pipeline transportation systems.

ABB assembled a team of five Russian and international contractors for this contract. ABB Lummus Global will be overall project manager with direct responsibility for two onshore production facilities. Natchiq Sakhalin, LLC will be responsible for offshore and onshore pipelines and arctic constructability. TriOcean-TERM, a Natchiq company, will design and engineer the offshore facilities. Han-Padron will plan and design the marine terminal facilities. Deutag will be responsible for the offshore and onshore drilling facilities. VNIPIneft, a Russian affiliate of ABB Lummus Global, will assist in onshore facilities design, permitting, coordination with other Russian design institutes, and translation.

The contribution of the three Russian contractors, VNIPIneft, Natchiq Sakhalin, LLC and Tri-Ocean TERM, comprise a substantial portion of the engineering effort. Their participation in the front-end design effort demonstrates the commitment to maximize Russian content in this project. The bid packages for subsequent detailed design and construction will also be structured in such a manner as to maximize the use of Russian design, equipment supply, fabrication and construction capabilities.

Exxon Neftegas Limited is operator for the multinational Sakhalin 1 consortium with a 30 percent working interest. Other co-venturers include the Japanese company SODECO (30 percent), and Russian companies SMNG-Shelf (23 percent) and Rosneft-Sakhalin (17percent).

ABB ( serves manufacturing, process and consumer industries, utilities, the oil and gas sector and infrastructure markets, with 160,000 employees in more than 100 countries.

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