SAKHALIN-1 BRINGS NEW MEDICAL CAPABILITIES TO DE-KASTRI
Community of De-Kastri (Ulchi District, Khabarovsk Krai), April 14, 2005. -- Exxon Neftegas Limited (ENL), the operator of the Sakhalin-1 oil and gas project, announced in a ceremony held today in De-Kastri that it had invested significant funds for needed improvements at the local hospital, including medical treatment and diagnostic equipment, staff training and augmentation, and an ambulance. These major improvements will allow the clinic to significantly enhance the quality of medical services available to residents of the De-Kastri community, as well as supporting the Sakhalin-1 project's nearby construction site and future oil export terminal.The state-of-the-art medical equipment provided to the clinic will broaden the capabilities of the clinic's surgeons and trauma specialists by upgrading X-ray and life support systems. The ambulance has off-road capability, important in De-Kastri’s rural setting. ENL has also financed the addition of a doctor to the hospital staff.
At the ceremony held in De-Kastri today, Mark Hackney, Vice President of ENL, noted that ENL had chosen to upgrade the hospital's capabilities and share the improvements with the community rather than build a separate medical facility for its export terminal. "For ENL, the requirement for safety is an overriding priority and we are committed to ensuring the safety of our personnel, our neighbors in the community, and the environment. The improvements to the DeKastri hospital are an excellent example of how the local community benefits from our nearby operations as we work to supply important energy to the Khabarovsk Krai and the world," said Mr. Hackney. He also noted that Sakhalin-1 expects to begin deliveries of natural gas to Khabarovsk Krai buyers by the start of this year's heating season.
The Sakhalin-1 project includes the Chayvo, Odoptu, and Arkutun-Dagi fields. Potential recoverable reserves are approximately 307 million tons of oil (2.3 billion barrels) and 485 billion cubic meters of gas (17 trillion cubic feet). The total investment in full-scale field development has been estimated at over US$ 12G (2002 dollars). To this date, more than US$ 3G has been spent on the project. In addition to Exxon Neftegas Limited (30% participating interest and the operator of the project), the investors in the Sakhalin-1 project include a Japanese company - Sakhalin Oil and Gas Development Company Limited (30%), an Indian company - ONGC Videsh Limited (20%), and two Russian companies - Sakhalinmorneftegaz-Shelf (11.5%) and RN-Astra (8.5%).
For more information on the Sakhalin-1 project please contact Michael Allen (Yuzhno-Sakhalinsk - 4242-678812), Glenn Waller (Moscow - 095-564-8950), or visit the Sakhalin-1 website (www.sakhalin1.ru and www.sakhalin1.com).