The feasibility study evaluating the prospects of a liquefied natural gas (LNG) project in Sakhalin, between Rosneft and ExxonMobil, should be ready by mid-2017, media reports said this week.
In 2013, the companies agreed to move to the next study phase for an LNG development in the Russian Far East. They planned to undertake work to determine the plant site, gas liquefaction technologies and commercial structure of the project. Once this was finalized, the parties would progress with engineering, Rosneft said at the time.
The implementation of the project was put on hold due to international sanctions against Russia after annexation of Crimea from Ukraine, infrastructure bottlenecks and uncertainty over gas reserves, Kallanish Energy notes.
The companies, which together drilled the first Arctic exploration well in 2014, are reportedly mulling joint venturing again. Last week, the Wall Street Journal reported ExxonMobil was seeking a U.S. waiver from sanctions on Russia, which initially was rejected.
The sanctions affecting Rosneft ban ExxonMobil from deals in areas such as the Arctic, Siberia and the Black Sea.