Sakhalin Energy Project Overview
3
Production Sharing Agreement
Advantages for Russia from the Sakhalin-2 PSA
> Inflow of foreign
investments
> New technologies and
unique experience
> Modernisation of the
existing infrastructure
and creation of new one
Contribution to
social and economic
development of the
region
Increase in tax revenues
of budgets of various
levels
and Russian Content
> Development of
domestic enterprises
and companies
New jobs
Russian personnel
training and
development
4
Russian Vendors:
Success Stories
What Is the Russian Content?
Russian content is one of the
principal conditions of the
Sakhalin-2 Production Sharing
Agreement.
Having become a party to the
agreement, Sakhalin Energy
committed to use its best efforts
to increase the share of the
Russian content in the project to
70% throughout the whole period
of the project implementation.
This means the use of Russian
manpower, materials, equipment,
and services.
Creation of tangible opportunities
for engaging Russian contractors
is one of the company's priorities.
In compliance with the PSA,
when holding tenders for the
supply of goods and services,
Sakhalin Energy prefers Russian
enterprises if their prices, quality,
and terms satisfy the company's
requirements. Special attention
is paid to the creation of joint
ventures. This helps Russian
companies obtain international
business experience, learn
international management
standards, and adopt advanced
technologies. Joint ventures
with the equity participation
of Russian companies and/or
individuals of at least 50% and
registered in the RF as legal
entities are considered Russian.
Roman Sinitsky
Deputy Finance Director,
Supply Chain Manager
Sakhalin Energy
Increase of the Russian content in the Sakhalin-2 project is
one of the priority tasks of Sakhalin Energy, and we manage
our procurement accordingly. We realise the importance
of our commitments and the high degree of responsibility to
the Russian party and shareholders, so we constantly expand
the base of domestic vendors of oil and gas equipment,
materials, and services.
PRIORITY
PARTNERSHIP
PRINCIPLE
Sakhalin Energy strives for maximum
participation of Russian enterprises in
the implementation of the Sakhalin-2
project. Such partnership is especially
important within import substitution
programmes, and helps create
high-quality and competitive
10
domestic products.
SAKHALIN
ENERGYView entire presentation