Sakhalin

Sakhalin is a large elongated island in the North Pacific, lying between 45° 50' and 54° 24' N, in the Russian Far East. It is a part of the Russian Federation. The capital of Sakhalin is Yuzhno-Sakhalinsk.

Economy

Sakhalin is a classic "resource economy" relying on oil & gas exports, coal mining, forestry, and fishing. There are also some coal deposits and limited quantities of rye, wheat, oats, barley and vegetables are grown, although the growing season averages less than 100 days.

Related Topics:
Oil - Gas - Coal - Forestry - Fishing - Rye - Wheat - Oat - Barley - Vegetable - Growing season

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Following the collapse of the Soviet Union and economic liberalization, Sakhalin has experienced an oil boom with extensive petroleum exploration and mining by most large oil multinationals. The oil and natural gas reserves contain an estimated 14 billion barrels (2.2 km³) of oil and 96 trillion cubic feet (2,700 km³) of gas.

Related Topics:
Oil boom - Multinational - Billion - Barrel - Trillion

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In 1996, two large consortium?s signed contracts to explore for oil and gas off the northeast coast of the island, Sakhalin-I and Sakhalin-II. The two consortium?s are estimated to spend a combined $21 billion U.S. dollars on the two projects. This will include an estimated $1 billion (US) to upgrade the islands infrastructure: roads, bridges, waste management sites, airports, railways, communications systems, and ports. In addition, Sakhalin-III-through-VI are in various early stages of development.

Related Topics:
1996 - Sakhalin-I - Sakhalin-II - Billion - U.S. dollars

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The Sakhalin-I project, managed by Exxon Neftgas Limited (ENL), completed a production-sharing agreement (PSA) between the Sakhalin-I consortium, the Russian Federation, and the Sakhalin government. Russia is in the process of building a 136 mile (219 km) pipeline across the Tatar Strait from Sakhalin Island to De-Kastri on the Russian mainland. From De-Kastri it will be loaded onto tankers for transport to East Asian markets, namely Japan, South Korea, and China.

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The second consortium, Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is managing the Sakhalin-II project. They completed the first ever production-sharing agreement (PSA) with the Russian Federation. Sakhalin Energy will build two 800 km pipelines running from the northeast of the island to Prigorodnoye (Prigorodnoe) on Aniva Bay at the southern end. The consortium will also build, at Prigorodnoye, the first ever liquid natural gas (LNG) plant to be built in Russia. The oil and gas is also bound for East Asian markets. Sakhalin-II has come under fire from environmental groups, namely Sakhalin Environment Watch, for dumping dredging in Aniva Bay. The groups are also worried about the offshore pipelines interfering with the migration of whales off the island.

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In 2000, the oil and gas industry accounted for 57.5% of Sakhalin's industrial output. By 2006, it is expected to account for 80% of the island's industrial output. Sakhalin's economy is growing rapidly thanks to its oil and gas industry. The island has recently become the second largest recipient of foreign investment in Russia after Moscow. Unemployment in 2002 was only 2%.

Related Topics:
2000 - 2006 - Moscow

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The idea of building a fixed link between Sakhalin and the Russian mainland was first mooted in the 1930s. In the 1940s, an abortive attempt was made to link the island via a 10 km long undersea tunnel. The workers supposedly made it almost to the half-way point before the project was abandoned under Nikita Khrushchev. In 2000, the Russian government revived the idea, adding a suggestion that a 40 km long bridge could be constructed between Sakhalin and the Japanese island of Hokkaido, providing Japan with a direct connection to the Euro-Asian railway network. It was claimed that construction work could begin as early as 2001. The idea was received skeptically by the Japanese government and appears to have been shelved, probably permanently, after the cost was estimated at as much as US$50 billion.

Related Topics:
1930s - 1940s - Tunnel - Nikita Khrushchev - 2000 - 2001

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