Sakhalin Energy Maintenance and Modification Services

In September 2006, Sakhalin Energy awarded Fluor's Global Services Business Group and its partners a five-year contract plus two one-year extensions at Client option to perform Maintenance and Modification Services (MMSC) for Sakhalin Energy's Liquefied Natural Gas (LNG) plant and Onshore Processing Facility (OPF), both located on Sakhalin Island, Russia.

Additional facilities in Fluor's scope included an Oil Export Terminal (OET) and an offshore Tanker Loading Unit (TLU). This project was the first LNG plant in Russia. Strategically, the project opened a new offshore energy province exporting Russia's first LNG to North America and the growing economies of Asia. Sakhalin Energy facilities are located in both sub-Arctic and seismic conditions.

Client's Challenge

Sakhalin Energy is the operator of the Sakhalin-2 project under a Production Sharing Agreement with the Russian Federation. The company was formed in 1994 to develop the Piltun-Astokhskoye and the Lunskoye oil and gas fields in the Sea of Okhotsk offshore Sakhalin Island in the Russian Far East.

The LNG processing plant and OET are located on a 490-hectare site on Aniva Bay, 13 kilometers east of Korsakov. The LNG processing plant has an annual production capacity of 9.6 million tons, making it one of the largest LNG plants built worldwide to date. The OPF is located in the northeast of Sakhalin Island, approximately 800 kilometers north of the LNG plant.

Source: www.sakhalinenergy.ru; Photo copyright Sakhalin Energy Investment Company Ltd.

Fluor's Solution

Recognizing the growing importance of offering a local and sustainable solution, Fluor and its partners formed a local Russian company to provide asset centric services to the Russian Far East. Established in 2006, the company is called SakhalinNefteGasServis (SNGS) and is based in Yuzhno-Sakhalinsk, Sakhalin Island. Proudly Russian, SNGS offers the local market with a competitive and value based local solution that is under pinned by international best practices.

The MMSC scope of work includes commissioning and start-up assistance; maintenance, inspection, integrity, and performance services; minor modifications; shutdown execution, training, and competency assurance; and the supply of plant equipment and tools.

Conclusion

SNGS provides a service to meet the evolving needs of the asset with a workforce of approximately 400 employees, increasing as needed during shutdowns. Local content and world-class HSE performance are integral to SNGS's service offering. As of October 2012, SNGS was performing the work with +97% local Russian content, delivering over 5.9 million man-hours and driven over 3.8 million kilometers with ZERO Lost Time Incidents.

The establishment of SNGS demonstrates Fluor's long-term vision and commitment to Russia, Sakhalin Energy and its shareholders to meet steady-state operating business challenges by becoming the oil and gas industry service providers of the future.