Sakhalin-1 to Cut Output

The Sakhalin-1 project in Russia is set to cut oil output by 25 percent this year, an Exxon Mobil project partner has told Reuters.

The field, which reached peak production of 250,000 bpd in the first quarter of 2007, is becoming depleted.

The Sakhalin-1 project includes three offshore fields: Chayvo, Odoptu, and Arkutun Dagi and is one of Exxon Mobil's largest single foreign investments in Russia.

Last February, Exxon Mobil announced the Russian contracts awarded for Sakhalin-1 had exceeded US$3.6bn.

The neighbouring Sakhalin-2 project, co-led by Gazprom and Shell, postponed the launch of year-round production in 2007.

By staff writer