ABB has signed a contract worth USD 987 million with Exxon Neftegas Ltd, to develop onshore oil and gas processing and well-site support facilities on Russiaâs Sakhalin Island, in the Sea of Okhotsk. ABB will subcontract most of the work associated with the project to Russian companies, working with project operator Exxon Neftegas to pre-qualify Russian subcontractors. First oil production from the project is scheduled to commence in 2005. âOur experience with working in harsh climatic environments, as well as delivering large projects in Russia, were key factors in winning this contract,â? says Gorm Gundersen, executive vice president and head of the ABBâs Oil, Gas and Petrochemicals division.
ABB Lummus Global Moscow and VNIPINeft, a leading Russian design institute and an ABB affiliate, will be responsible for onshore facilities design, permitting, coordination with other Russian design institutes, translation, procurement and construction. The contract includes engineering and design, procurement of equipment and materials, and construction of onshore production and support facilities for three well sites.
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