Sakhalin is located in the NW Pacific, north of Hokkaido on the fringes of the Kuril back-arc Basin. It is unique in being the only part of Far East Asia to produce large amounts of hydrocarbons. Most production comes from onshore areas, but large finds have been made offshore most recently in 2004 by BP-Sakhalin in the Deryugin Basin. Reservoirs sourced from the Amur River are the main exploration target.
