Sakhalin sees Exxon oil output falling in 2008

An Exxon Mobil-led group developing Russia’s Sakhalin-1 oil block is likely to reduce production to around 200,000 bpd next year from the peak of 250,000 bpd in 2007, the governor of Sakhalin said on Friday.

“The capital expenditures plan for Sakhalin-1 is $1.26 billion and the oil production plan on Sakhalin-1 is 10 million tonnes,” Alexander Khoroshavin, the governor of the eastern island, told a news conference.
Sakhalin-1 has reached peak production of 250,000 bpd in mid February but has warned its output of light Sokol SOK- crude will start declining from 2008 after Russia decided against boosting the consortium’s contract territory and reserves.

Reuters