ABB wins $987 million oil and gas order
23 Jul 2002
ABB has signed a contract worth $987 million with Exxon Neftegas Limited, to develop onshore oil and gas processing and well-site support facilities on Russia's Sakhalin Island, in the Sea of Okhotsk.
ABB will sub-contract the majority of the work associated with the project to Russian companies, working with project operator Exxon Neftegas Limited to pre-qualify Russian sub-contractors.
'Our experience with working in harsh climatic environments, as well as delivering large projects in Russia, were key factors in winning this contract,' said Gorm Gundersen, executive vice president and head of the ABB's Oil, Gas and Petrochemicals division.
ABB Lummus Global Moscow and VNIPINeft, a Russian design institute and an ABB affiliate, will be responsible for onshore facilities design, permitting, co-ordination with other Russian design institutes, translation, procurement and construction.
The contract includes engineering and design, procurement of equipment and materials, and construction of onshore production and support facilities for three well sites.
The Sakhalin project is said to be the largest foreign direct investment project in Russia and has recoverable resources of approximately 2.3 billion barrels of oil and 17 trillion cubic feet of gas. It covers three offshore fields containing large oil and gas reserves.
First oil production from the project is scheduled to commence in 2005.
