Exxon’s Sakhalin output to fall sharply in 2008

MOSCOW, Feb 6 (Reuters) – Exxon Mobil’s (XOM.N: Quote, Profile, Research) Sakhalin-1 project will cut oil output sharply this year, a project partner said on Wednesday amid a gloomy outlook for Russia’s overall production this year due to stagnation in West Siberia.

Sakhalin-1, which reported peak production of 250,000 barrels per day early last year, will cut annual average production by over 25 percent this year – much steeper than expected – as the field is getting depleted.


“Peak production of 11.2 million tonnes (225,000 barrels per day), which we saw last year, has passed,” said Lev Brodsky, the head of Sakhalin projects at Russian state oil major Rosneft (ROSN.MM: Quote, Profile, Research). Exxon was not immediately available for comments.

Brodsky said production was expected to fall to 7.9-8.2 million tonnes in 2008. Russian officials have previously said the field would produce around 10 million tonnes this year.

Russia, the world’s second-largest oil exporter, increased output by 2.3 percent last year to 9.87 million bpd with the growth coming mainly on the back of higher Sakhalin-1 production.

Reuters