The Sakhalin 1 Project is one of the oil and gas development projects located on the northeast shelf of Sakhalin Island, water depth is 10 to 60 meters and the thick ice covers the area 6 to 7 months a year. The project was declared commercial by the Sakhalin 1 consortium in October, 2001, and started development period from 2002. Total recoverable reserves are estimated at 307 million tons of oil and 485 billion cubic meters of natural gas. This project consists of three fields, Chayvo, Odoptu and Arkutun-Dagi, which are currently planned to develop in phases 1 to 4, using both offshore and onshore wells. Many of these wells will be drilled using a new drilling technique called ERD (extended reach drilling), which allows oil and gas targets to be drilled by the rig located a great distance away. The first phase of development is focusing on the oil production of Chayvo and Odoptu fields, and the start of the oil production from Chayvo field is scheduled at the end of 2005.The oil will be transported through the pipeline to the marine tanker terminal at DeKastri. Large marine tankers will be escorted by icebreakers using a new developed ice passport concept, which would confirm the safety and reliability of plans for the year-round export operations.These advanced technologies will be applied significantly to reduce the overall cost of development and to minimize environmental impact.