News

SSAKHALIN-1 LAUNCHES SMALL BUSINESS SUPPORT PROGRAM IN THE ULCHI DISTRICT, KHABAROVSK KRAI

Khabarovsk, May 7, 2009 -- Small businesses in the Ulchi District of Khabarovsk Krai will have access to operating capital under a US $200,000 micro-finance program announced today by Exxon Neftegas Limited (ENL), operator of the Sakhalin-1 Project, on behalf of the Sakhalin-1 Consortium.

This is an extension of the successful North Sakhalin Credit Program, that resulted in 100 small businesses and more than 500 local jobs in the Nogliki and Okha northern districts of Sakhalin, where ENL facilities are located.

The new program is implemented jointly by the Khabarovsk Krai Government’s Small Business Support Foundation, Ulchi District Administration and the Sakhalin-1 Consortium

The program's primary feature is lending to financially-viable small businesses that lack a credit history or the required collateral to obtain commercial bank loans.

"The Sakhalin-1 project continues to deliver significant benefits to Russia," said James Taylor, ENL President. "Our objective is to help residents of Sakhalin Oblast and Khabarovsk Krai capture more of the benefits of economic development from our investments. We hope to continue to see more local businesses among our contractors and subcontractors," he added.

Sakhalin-1’s oil export terminal is located in the town of De-Kastri, Ulchi District, Khabarovsk Krai. The micro-finance program will give the Krai entrepreneurs an opportunity to develop their businesses. In addition to obtaining financing, they will also receive training in various aspects of business administration.

The micro-finance program is among the significant economic and social benefits that Sakhalin-1 provides to Russia. These benefits include:

over US$1.6 billion in royalties and the state’s share of oil & gas to the Russian Federation budget, US$ 472M to the Sakhalin Oblast,
approximately US$5.3 billion in contracts to Russian companies or joint ventures,
over US$120 million invested in Sakhalin and Khabarovsk Krai infrastructure improvements,
more than 4 billion cubic meters of natural gas delivered to Russian Far East customers, and
over US$3.5 million of charitable contributions provided to local community.

Information for editors: Exxon Neftegas Limited, an affiliate of ExxonMobil, is the Sakhalin-1 Project Operator. Other project co-ventures are: the Japanese consortium Sakhalin Oil and Gas Development Co. Ltd. (30 percent); affiliates of the Russian state company Rosneft – RN-Astra (8.5 percent) and Sakhalinmorneftegas-Shelf (11.5 percent); and the Indian state oil company ONGC Videsh Ltd, (20 percent). Total estimated reserves of the fields are 307 million tons (2.3 billion barrels) of oil and 485 billion cubic meters (17.1 trillion cubic feet) of natural gas.

More detailed information on the Sakhalin-1 Project can be found on http://www.sakhalin1.com or www.sakhalin1.ru