Pipeline technology specialist, STATS Group, (STATS) has signed a trilateral Memorandum of Understanding (MoU) which will significantly increase their presence on Sakhalin-2, Russia’s first offshore gas project.

The MoU between STATS, Sakhalin Energy and OOO INTRA Services Company was signed during the Eastern Economic Forum in Vladivostok, which was attended by Russian Federation President, Vladimir Putin.

One of the world’s largest integrated, export-oriented, oil and gas projects, Sakhalin-2 is operated by Sakhalin Energy Investment Company Ltd., which is owned by Gazprom, Shell, Mitsui and Mitsubishi. The project infrastructure includes three offshore platforms, an onshore processing facility, 300 kilometers of offshore pipelines and 1,600 kilometers of onshore pipelines, an oil export terminal and a liquefied natural gas (LNG) plant.

The agreement provides for STATS personnel to work jointly with Russian partners to implement projects for the wrapping, maintenance, hydraulic testing, tie-in, isolations and shut-off of Sakhalin Energy pipelines. The MoU also serves as a starting point for long-term cooperation with a gradual increase in the Russian content and local production of STATS-provided technology in Russia.

Leigh Howarth, CEO, STATS Group

STATS Group Chief Executive Officer, Leigh Howarth, said: “In recent years we have developed a mutually beneficial relationship with Sakhalin Energy and I am delighted this MoU formalizes our partnership and lays the foundations for working more closely with Sakhalin Energy and OOO Intra Services on key pipeline projects. Sakhalin-2, as a large and technically challenging project, provides an excellent opportunity for assisting our partners in increasing Russian content.”

Sakhalin Energy Chief Executive Officer, Roman Dashkov, added: “Adoption of cutting-edge technologies that can guarantee safe and efficient operation of our production facilities is an important component of the comprehensive execution of the Sakhalin-2 project, which is unparalleled in its technical complexity among global oil and gas projects.

“Despite the current political and economic climate, we strive to ensure utmost reliability of our equipment and systems, as well as to promote an increase in the local content of services, including highly specialized ones, through expansion of cooperation with our key Russian and foreign partners.”