Gazprom Hires Partner for Far East Work: Press
Russian state controlled Gazprom has awarded a turnkey contract worth rubles 50.968bn ($806mn) for onshore and offshore facilities at the Kirinsk gas project in the Far East in June, state procurement documents seen by Russia's Prime news agency on July 22 show.
The contract was secured by RusGazDobycha (RGD), a company linked to Russian businessmen Arkady Rotenburg and Artyom Obolensky that is also working with Gazprom to develop a major gas processing and liquefaction hub on the Baltic Sea. RGD will be required to complete a subsea production complex and an onshore processing plant by an April 2022 deadline.
The Kirinsk field off the shore of Sakhalin Island was brought on stream by Gazprom in 2013, and output has now reached 5.5bn m3/yr. Its resources are estimated at 162.5bn m3 of gas and 19.1mn mt of condensate, according to Russian reserve classifications.
Gazprom began searching for a contractor to build the new Kirinsk facilities last year, holding several unsuccessful tenders for the work. Each time the tender results were voided and the maximum value of the contract on offer was raised, first from rubles 35bn to rubles 46bn and finally to 51bn rubles.