Sakhalin Energy Project Overview
Message from
Chief Executive Officer
Dear colleagues,
I am pleased and proud to
present you with this booklet
on the development of Russian
content under the Sakhalin-2
project.
Sakhalin Energy has repeatedly
declared its intent to maximise
Russian industry utilisation in
the project. The company has
come up with its Russian Content
Development strategy that
includes a number of measures
to achieve this goal. Signing
Memorandums of Understanding
with promising Russian vendors
to state our intention to
cooperate and determine our
mutual plans has become good
practice for Sakhalin Energy.
These efforts generally result
in new service contracts and
equipment/materials purchase
orders.
Over the last two years, the
company awarded 5,819
contracts to Russian enterprises.
The combined value of these
contracts is 3.78 billion USD,
or 84% of the total value of
all contracts executed during
that time period. Getting a
number of major contracts
awarded to and a number of
cooperation agreements signed
with Russian shipbuilders,
equipment manufacturers and
steel producers over this period is
a significant achievement for the
company.
Thanks to their participation in
the Sakhalin-2 project, Russian
companies gain access to unique
opportunities to modernise
their assets, introduce state-of-
the-art technology and adopt
international quality, safety
and environmental protection
standards, clearly enhancing
their competitiveness, both
As the operator of Sakhalin-2, one of the world's
largest oil and gas projects, and a party to Russia's first
Production Sharing Agreement, Sakhalin Energy will
make every effort to bring the share of Russian content
to 70% throughout the lifetime of the project.
domestically and internationally.
We put a lot of focus on the
financial sector. Since 2010,
Sakhalin Energy has been actively
cooperating with Gazprombank.
In 2015, the company has started
running a significant share of
its transactions with Russian
vendors through this bank. Today,
we are jointly exploring a new
opportunity for cooperation:
negotiations are under way
for Gazprombank to extend a
revolving working capital credit
facility to the company.
Involvement of Russian
enterprises in the Sakhalin-2
project results in the multiplier
effect across various related
sectors of the economy,
increasing local, regional and
federal government tax revenue
and spurring the development of
social infrastructure.
In 2009, after the commissioning
of liquefied natural gas (LNG)
plant, Sakhalin Energy set
on a new mission: to be the
premier energy source for
the Asia-Pacific. Today, the
company is actively pursuing
the expansion of its LNG plant.
The Train 3 project will open new
opportunities for Russian vendors
and create additional jobs.
There is no doubt that the
company will need highly skilled
Russian personnel. In the next
two years, Sakhalin Energy plans
to Russinise dozens of expatriate
positions. This means that our
universities face a new challenge
of developing programmes and
curricula to train world-class
Russian personnel.
It is equally important to keep
the focus on import substitution
in the oil and gas industry. I am
convinced that this will give an
extra boost to the development
of Russian manufacturing
companies and create an
environment that will allow them
to supply their goods to major oil
and gas projects.
I sincerely hope that Russian
enterprises will be proactive in
offering ideas and opportunities
for cooperation, and would like
to welcome everyone who wishes
to partner with us on our project
and to grow together.
Regards,
ов
Roman Dashkov
1
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