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306 MIDSTREAM AND DOWNSTREAM OPERATIONS
The Russian–Japanese border on Sakhalin Island did not change again until the
end of World War II in 1945. Southern Sakhalin Island and the Kuril Islands were
controlled by Japan at the beginning of World War II. Japan was able to control the
main sea‐lanes that connected the southern part of the Soviet Far East with the rest of
the world. The Kuril Island of Iturup was a staging point for the Japanese aircraft
carrier fleet that attacked Pearl Harbor in December 1941.
Russia and Japan had a nonaggression pact during most of World War II. The
United States dropped the first atomic bomb on Hiroshima on August 6 and another
on Nagasaki on August 9. Russia rejected the nonaggression pact and declared war
on Japan on August 8, 1945.
The Japanese accepted the Potsdam Declaration that defined terms for Japanese
surrender to end World War II on August 15, but hostilities between Japan and Russia
continued for several days. The Soviet Red Army crossed the fiftieth parallel on
Sakhalin Island and Russian marines landed on several of the Kuril Islands. Hostilities
ended on August 20, 1945.
Russia controlled Sakhalin Island and the Kuril Islands by the beginning of
September 1945. The Presidium of the Supreme Soviet declared Soviet Sovereignty
over the entire area on February 2, 1946. The Yuzhno‐Sakhalinsk region was formed
to govern southern Sakhalin Island and the Kurils in the Russian Far East. The
Yuzhno‐Sakhalinsk region and Khabarovsk region were included in the Sakhalin
region on January 2, 1947.
Soviet entry into the war against Japan was welcomed by the United States and
Britain. When the Cold War began, the United States was no longer happy with
Soviet possession of these strategic islands. Many Japanese and Koreans on Sakhalin
Island were repatriated in the late 1940s, and many Ainu chose to leave. The Soviet
government organized a massive transfer of people to Sakhalin Island. By the
beginning of the 1950s, Sakhalin Island had a population of seven hundred thousand
people, with over eighty percent Russian. Sakhalin Island has been under the juris-
diction of the Soviet Union and now Russia since 1945.

15.4.2 The Sakhalin‐2 Project
The development of oil and gas fields and the growth of the Asian economy turned
Sakhalin Island into a valuable prize. Onshore and offshore fields were discovered on
the northern half of Sakhalin Island. Figure 15.9 shows five major offshore fields and
the infrastructure for the Sakhalin‐2 project. Three of the five fields (Arkutun Dagi,
Chayvo, and Odoptu) were awarded to the Sakhalin‐1 project for development, and
two fields (Lunskoye, P‐A) were awarded to the Sakhalin‐2 project for development.
Both projects required substantial infrastructure development because the existing
infrastructure associated with onshore field production did not have the capacity to
handle offshore field production, transport, and processing. We outline the Sakhalin‐2
project to illustrate midstream and downstream operations.
The Lunskoye field was discovered in 1984 and the P‐A field was discovered in
1986. The Lunskoye field is a gas reservoir with an oil rim. The P‐A field is an oil
field with two anticlines connected by a syncline. In simple conceptual terms, the