Sakhalin-1 is an oil and gas project implemented on Sakhalin Island under the terms of a production sharing agreement.
The project develops of oil and gas on the northeast shelf of Sakhalin Island. The development area includes the Chayvo, Odoptu-Sea and Arkutun-Dagi deposits. Recoverable reserves are estimated at 2.3 billion barrels of oil (307 million tons) and 485 billion cubic meters of natural gas.
The operator of the Sakhalin-1 project is Exxon Neftegas Limited, a subsidiary of the American company ExxonMobil (a 30% interest); other members of the consortium for its development - the Russian company Rosneft through its sister organizations RN-Astra (8.5%) and Sakhalinmorneftegaz-Shelf (11.5%); Japanese consortium SODEKO (30%); Indian state oil company ONGK Videsh Ltd. (20%)
The Sakhalin-1 project will remain one of the largest projects with foreign direct investment in Russia.
The Production Sharing Agreement (PSA) with the international consortium for the Sakhalin-1 project was signed on June 30, 1995 by the government of the Russian Federation and the administration of the Sakhalin Oblast, and entered into force in June 1996.
In October 2005, oil and gas production began at the Chayvo field. Gas produced at this site is supplied to domestic consumers in the Khabarovsk Territory. There are plans to build a gas pipeline between Sakhalin and Japan.
In January 2011, an oil well of the Odoptu-Sea field, drilled at an acute angle to the surface of the earth, the Sakhalin-1 project with a length of 12,345 meters became the longest well in the world. In June 2013, the world record for the length of the well was again broken at the Chayvinskoye field: the length of the longest well was 12,700 meters.