Page 9: of Maritime Reporter Magazine (July 1996)

nearly identical to the system recently installed on M/V

Klahowya, another WSF vessel.

Crew training was an important component in the bid evaluation.

Siemens will provide three weeks of classroom training for each crew, as well as two months of onboard operating, maintenance and repair training. Work will begin after the busy summer season, with the M/V

Nisqually first on the worklist.

The 75-car, 800-passenger vessel will make voyage through the

Hiram D. Chittenden Locks to

Lake Union Dry Dock, and work will take approximately six months to complete. MA" Illahee and M/V Quinault will follow. To ensure a smooth refit, Siemens is setting up an on-site office near the

Lake Union facility. Project

Manager Maryse Langevin from

Siemens Marine's headquarters in

Montreal, and Contract

Administrator Nina Sdunzig will staff the office, while Andre

Godin, P.E., will be the on-site engineer and liaison between the company and shipyard.

The WSF system has three

Jumbo Mark II auto ferries under construction at Todd Shipyards in

Seattle, Wash. Siemens is the propulsion control, and alarm and monitoring provider for these ships as well.

Exxon Finalizes

Agreement In $ 15

Billion Project

Project estimated to produce 2.5 billion barrels of crude oil, 15 trillion cubic feet of gas

Exxon Corporation announced that an agreement has been reached by the Sakhalin I

Consortium to formally declare the

Sakhalin I Production Sharing

Agreement effective June 10, and begin evaluation work on the bil- lion Sakhalin I project, offshore

Sakhalin Island, worth an estimat- ed $15 billion.

The project would involve the development of an estimated 2.5 billion barrels of crude oil and con- densate and 15 trillion-cubic-ft. of gas, equal to a total of 5 billion oil equivalent barrels, in three off- shore fields. The fields are located in water depths of up to 165 ft. (50.3 m), 15 to 20 miles off the northeastern coast of Sakhalin

Island.

K.T. Koonce, chairman of Exxon

Neftegas Ltd., an affiliate of Exxon

Corporation, stressed the impor- tance of this significant multi- national project to the people of

Sakhalin Island and the Russian

Federation. "The Sakhalin I pro- ject should make a major contribu- tion to economic growth in the

Russian Far East region.

According to our estimates, over the life of the project, Sakhalin I

July, 1996 could generate many billions of dollars in revenues from sales of hydrocarbons and be responsible for the creation of thousands of jobs. The majority of the invest- ment and operating expenditures required for labor, materials and services is expected to go directly to the Russian private sector."

In keeping with the consortium's desire to proceed as rapidly as pos- sible, a well will be drilled and tested, and state-of-the-art 3D seismic work will be conducted this summer. The well will be drilled in the Arkutun-Dagi field using

Sakhalinmorneftegas' OKHA drilling rig.

This is the first part of a $200 to $300-million resource appraisal program that is required to better define estimates of reserves in the three fields, Chayvo, Odoptu and

Arkutun-Dagi. The appraisal pro- gram includes drilling, coring and testing additional wells, as well as conducting additional 3D seismic surveys.

The multinational Sakhalin I

Project Consortium includes two

Russian companies, Rosneft-

Sakhalin and

Sakhalinmorneftegas-Shelf, the

Japanese company Sakhalin Oil and Gas Development Co., Ltd., (SODECO) and Exxon Neftegas

Limited, an affiliate of Exxon

Corporation and operator of the project. Exxon and SODECO each

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