Arkutun-Dagi

Arkutun-Dagi Oil and Gas Field Profile

Location and Geology

The Arkutun-Dagi oil and gas field is located approximately 25 kilometers offshore Sakhalin Island in the Sea of Okhotsk, Russia. It is part of the larger Sakhalin-1 project, which also includes the Chayvo and Odoptu fields. The field is situated at water depths ranging from 15 to 40 meters.

Discovery and Development

The Arkutun-Dagi field was discovered in 1989. Extensive exploration activities, including 3-D seismic surveys and appraisal wells, were conducted from 1996 to 2001. The development of the field began as part of the third phase of the Sakhalin-1 project. Construction started in 2002, with the installation of the Gravity-Based Structure (GBS) for the Berkut platform in May 2012 and its successful installation in June 2014.

Ownership and Consortium

The Sakhalin-1 project, including the Arkutun-Dagi field, is operated by Sakhalinmorneftegaz-Shelf since October 2023, following ExxonMobil's withdrawal in March 2022 due to the 2022 Russian invasion of Ukraine. The consortium partners include:

• Sakhalinmorneftegaz-Shelf (11.5%)
• RN-Astra (8.5%), a Rosneft affiliate
• SODECO (30%), a Japanese consortium
• ONGC Videsh Limited (20%), an Indian state-owned company
• Previously, Exxon Neftegas Limited (ENL), a unit of ExxonMobil, held a 30% interest.

Infrastructure and Platform

The Arkutun-Dagi field is developed using the Berkut platform, which is the largest ice-resistant fixed platform of its kind in Russia. The platform is placed on top of a GBS fixed to the seabed at a depth of 35 meters. The Berkut platform is designed to withstand extreme conditions, including temperatures up to -44°C, waves up to 18 meters high, and pressure from 2 meters thick ice. It is equipped with a drilling rig, processing facilities, living quarters, a helipad, and other ancillary facilities. The platform's topside weighs 42,000 tons, and the total weight exceeds 200,000 tons. The drilling rig has a top drive of 142 kN/m and a lifting capacity of 1,150 tons. Friction pendulum bearings are used to withstand earthquakes of up to magnitude 9.0.

Production

Production from the Arkutun-Dagi field started in January 2015. The field is expected to reach a peak production of 85,000 barrels of oil per day by 2019, increasing the annual production capacity of the Sakhalin-1 project by 32.5 million barrels (4.5 million tonnes) of oil. The total annual production from the Sakhalin-1 project is estimated to exceed ten million tonnes by 2018. The oil produced is transferred to the existing Chayvo onshore processing facility (OPF) via a 25-kilometer-long well-stream flowline and then to the De-Kastri export terminal. Natural gas from the field is sold domestically.

Reserves and Production Capacity

The Sakhalin-1 project, including the Arkutun-Dagi field, is estimated to hold approximately 2.3 billion barrels (307 million tonnes) of oil and 17.1 trillion cubic feet (485 billion cubic meters) of natural gas. The Arkutun-Dagi field specifically has reserves classified into different categories, with estimated reserves ranging from 530 to 603 million barrels of oil depending on the classification.

Drilling and Wells

A total of 45 wells are planned for the Arkutun-Dagi field, including 28 oil-producing wells, 16 water injection wells, and one cutting re-injection well.

Environmental and Technical Challenges

The development of the Arkutun-Dagi field faced significant technical challenges due to the harsh arctic climate, including extreme temperatures, ice, and seismic activity. The platform and associated infrastructure were designed to withstand these conditions, making it a technically complex and significant project in the offshore oil and gas industry.

Economic and Social Impact

The Sakhalin-1 project, including the Arkutun-Dagi field, is one of the largest foreign direct investments in Russia, estimated at $10-12 billion. The project has created nearly 13,000 jobs and has contributed significantly to the regional economy by lowering unemployment and improving the tax base of the regional government.

Future Outlook

Production from the Sakhalin-1 project, including the Arkutun-Dagi field, is expected to continue until 2050. The project's long-term viability and continued operation are subject to the current geopolitical and economic conditions following the changes in project management and ownership.