SAKHALIN-1 AWARDS MAJOR CONTRACT TO VOSTOK AVIATION COMPANY
YUZHNO-SAKHALINSK, Russia - May 26, 2002 -- Exxon Neftegas Limited (ENL), operator for the Sakhalin-1 Consortium, today announced that Vostok Aviation Company (VAC) of Khabarovsk has been awarded a major five-year contract for aviation services.Under the contract, VAC will operate offshore-equipped helicopters for the exclusive use of the Sakhalin-1 Project, providing qualified crews, supervision, training, spare parts and a maintenance program. Currently, VAC provides two Mi-8MTV helicopters for the exclusive use of the project. To support increasing project activities, this base fleet will be expanded in 2003 with the addition of two new Mi-8MTV's purchased from Kazan Helicopter Plant.
VAC was established in 1993 and is a 100% Russian-owned entity, operating domestic and international projects. It has provided aviation services to Sakhalin-1 Project since 1997 and has demonstrated a high standard of operational and safety performance.
VAC will provide aviation service to the Sakhalin-1 oil and gas project throughout the first phase of its development of the Chayvo and Odoptu oil fields, offshore the northeast coast of Sakhalin Island. At US$4.6 billion capital investment, the first phase of the Sakhalin-1 Project is part of the largest foreign direct investment under a Production Sharing Agreement in Russia, and the first to include Russian partners (RN-Astra and SMNG-Shelf), in addition to SODECO (Japan), ONGC Videsh Ltd. (India), and the operator ENL, a subsidiary of the U.S.oil major ExxonMobil.
According to Larry Smith, Vice-president of ENL, this is another example of ENL's commitment to ensure involvement of Russian businesses in the Sakhalin-1 Project. "We will continue to seek and contract Russian companies and organizations with experience and skills required to carry out work in a safe and environmentally responsible manner."
The Project has established a website for information on contracting opportunities at www.sakhalin1.ru. For more information, please contact Michael Allen in Yuzhno-Sakhalinsk (4242) 46-88-12