|The White House
President George W. Bush
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For Immediate Release
Office of the Press Secretary
November 13, 2001
Sakhalin I Project Fact Sheet
Sakhalin I Project
On October 29, 2001, the Sakhalin I Consortium declared the project commercial, announcing that it would proceed with the development of the three offshore oil and gas fields.
U.S. Commerce Secretary Donald Evans commented on the October 29 Consortium announcement: "The Sakhalin I Consortium underscores exciting new opportunities for U.S. investment in Russia, and sends a strong signal from Russia's leaders that foreign investment on a large scale is welcome. Similar successes on other Production Sharing Agreements would continue to strengthen Russia's position as a country that is interested in attracting large and complex investments. Russia is demonstrating a willingness to work with investors to make these types of projects succeed."
The Sakhalin I Consortium taps into the plentiful oil and gas reserves in northeast Russia to bring them to the world market. The Sakhalin I area is comprised of three major offshore oil and gas fields near Sakhalin Island: Odoptu, Chayvo, and Arkutun-Dagi. Its blocks are estimated to contain about 2.3 billion barrels of oil and 17 trillion cubic feet of gas.
The Sakhalin I project is funded by investors from four countries (United States, Russia, Japan and India) and is ultimately expected to result in about $12 billion in capital investment, making it the largest direct foreign investment in Russia to date.
A U.S. company -- ExxonMobil -- operates the Sakhalin I project on behalf of the international consortium.
The Administration's National Energy Policy recognizes the strategic importance of Russia in relation to the energy sector. The policy encourages increased discussion with Russian officials on energy and investment, as well as assistance to U.S. companies in their efforts to stabilize the business climate. Sakhalin I and the Caspian Pipeline Consortium (CPC) are examples of how the United States and Russian Governments are working together to expand critical trade and investment opportunities that are beneficial to both countries.
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