YUZHNO-SAKHALINSK, October 2 (RIA Novosti) - Exxon Neftegas Limited, a subsidiary of U.S. oil major Exxon and operator of the Sakhalin-I oil and gas project off Russia's Pacific Coast, said on Thursday that it plans to boost natural gas output.
Exxon Neftegas CEO James Taylor said the company plans to raise natural gas production at the Chaivo deposit, and that this will require the drilling of additional gas wells and the expansion of existing coastal and offshore facilities.
Taylor said the project would help increase gas sales on the domestic and international markets.
The Sakhalin I project has recoverable reserves estimated at 315 million metric tons (2.3 billion barrels) of oil and 485 billion cubic meters of natural gas. Exxon Neftegas and Japan's Sodeco hold a 30% stake each in the project, while Russia's Rosneft and India's ONGC have 20% each.
Since the Sakhalin-I project was launched three years ago, Exxon Neftegas Limited has transferred $1.1 billion to Russia's budget in the form of royalties and a share of oil and gas output, and $211 million to the budget of the Sakhalin Region, Taylor said.
According to Taylor, Exxon Neftegas Limited has been able in the past three years to pay for all expenses out of its revenues and started to generate profit from June 2008.
Overall, the Russian budget will receive a total of more than $50 billion in the form of taxes, royalties and the state share in oil and gas output over the project's lifespan, Taylor said.
