SAKHALIN-1 PROJECT: SUMMARY OF 2005 CHARITABLE PROGRAMS
Yuzhno-Sakhalinsk, March 15, 2006 -- Exxon Neftegas Limited (ENL), Sakhalin-1 Project Operator, an affiliate of Exxon Mobil Corporation, today released information summarizing the charitable social and economic programs results in Sakhalin and Khabarovsk Krai in 2005. ENL contributed approximately three hundred thousand dollars for these purposes during the year. Priority in the use of these funds was given to education and health care. The 2005 funds bring the total for ENL's charitable social and economic program to over 2 MUSD since 1997.Education: The Department of Education of the Sakhalin Oblast and Yuzhno-Sakhalinsk, the Sakhalin State University, comprehensive schools, and kindergartens are among those which continue to receive support from ENL. Other long-term cooperation projects include financing of the economic education program Junior Achievements which unites about 8 thousand students of the Sakhalin Oblast, general sponsorship of Teacher of the Year Oblast contest for support of outstanding teachers, and intellectual games of the Logos Club for students. Last year ENL attention was also given to the primary issues of Nogliki School No.2 and Okha Comprehensive School No.1, and winners of the Senior Students Subject Competition in Yuzhno-Sakhalinsk received prizes and presents with the Project logo. Thanks to implementation of the program of small grants with participation of companys employees, many Sakhalin schools and kindergartens, attended by their children, also received financial support.
Of special note was ENL's continued cooperation with the Sakhalin State Traffic Safety Inspectorate as a general sponsor of Safety Wheel contest devoted to study of traffic rules by children for the seventh year running.
Indigenous Minority Peoples of the North: Having concluded the cooperation agreements with the Associations of Indigenous Minority Peoples of the North (IMPN) in Sakhalin (2001) and in the Ulchsky District of the Khabarovsk Krai (2003), ENL financed recreational camps for IMPN children, their sanatorium treatment, repair and purchase of computer equipment, and also events for national holidays and festivals. The following organizations also received significant funding during 2005: Sofiysk and Tyrsk Orphanages and the DeKastri Cultural Center in the Ulchsky District; the Comprehensive School, Feldsher and Obstetric Station, and Olenyenok Kindergarten in Val Settlement of the Nogliki District; and the Feldsher and Obstetric Station in Nekrasovka Settlement of the Okha District.
Cultural Projects: ENL endeavors to participate in Sakhalin cultural life. Thus, last year we continued financial cooperation with Yuzhno-Sakhalinsk Chamber Orchestra, sponsored issuance of the next volume of the Remembrance Book, and sponsored a memorial publication of the Sakhalin population census conducted by A.P. Chekhov.
Credit Program: Additional opportunities for business development are provided to entrepreneurs in the Sakhalin northern districts, where the North Sakhalin Credit Program [NSCP] for Small Business was started in 2004. The other participants of the Sakhalin-1 Consortium (see below) and the USA Agency for International Development performed as ENL partners in this project. In 2005, thanks to the second tranche of funding, the Nogliki Branch accommodated loans in the amount of three hundred thousand dollars to 24 small and medium businesses. As a result, about 120 new jobs were created in the District. Now, Okha entrepreneurs can obtain loans through the second office of NSCP which opened there last year.
Summarizing last year's charitable work in the social sphere, ENL Vice-President Mark Hackney stated that the contribution program is designed to have a lasting impact and that this program does not include even more significant investments of the Sakhalin-1 Consortium in mutually beneficial infrastructure improvements. As examples we can refer to the modernization and equipment for local hospitals in Sakhalin (Nogliki and Yuzhno-Sakhalinsk) and Khabarovsk Krai (De-Kastri), significant projects of roads and bridges upgrade, and renovation of the Chekhov Center in Yuzhno-Sakhalinsk. The charitable programs and our participation in a wide range of infrastructure projects are clear examples of our efforts to be good corporate citizens as we strive to make a positive contribution and work to support and strengthen local communities, added Mr. Hackney
Information for editors:
The Sakhalin-1 Project includes the Chayvo, Odoptu and Arkutun-Dagi fields. Throughout the Project implementation it is expected to produce approximately 307 million tons (2.3 billion barrels) of oil and 485 billion cubic meters (17.1 trillion cubic feet) of natural gas. To date, over 4.9 billion US dollars have been invested to the project. Along with Exxon Neftegas Limited (Project Operator, 30% interest) the Sakhalin-1 Consortium consists of Japanese company Sakhalin Oil and Gas Development Co., Ltd. (30%), Indian company ONGC Videsh Ltd. (20%) and two Russian companies, Sakhalinmorneftegas-Shelf (11.5%) and RN-Astra (8.5%).
For more information on Sakhalin-1 Project you may contact Michael Allen (Yuzhno-Sakhalinsk, tel. 4242 67 88 12) or go to the Sakhalin-1 Project websites (www.sakhalin1.ru and www.sakhalin1.com).