Sakhalin-1 Starts Office Construction
August 13, 2003 - - Yuzhno-Sakhalinsk -- Exxon Neftegas Limited (ENL), an ExxonMobil subsidiary, and operator of the Sakhalin-1 oil and gas project, today announced the awarding of a contract for construction of ENL's permanent office facilities in Yuzhno-Sakhalinsk.As a result of a competitive tender process, a contract is being awarded to Bouyguesstroy (Russian subsidiary of Bouygues Bâtiment) teamed with a local company Transstroy Sakhalin for the office construction. This announcement adds to the significant share of contracts awarded to Russian companies, already well over $2 billion for Phase One of the Sakhalin-1 project.
The new ENL office located at the intersection of Sakhalinskaya St. and Mira Ave. provides a centralized workplace for more than 300 ENL employees. The facilities will include one five-story office building, a parking garage, gate house and landscaping that will retain as much of the existing wooded setting on the site as possible.
According to Stephen Terni, President of ENL, the construction of permanent office will further establish ENL’s presence on Sakhalin Island while reinforcing ENL’s commitment to Russian content in the Sakhalin-1 Project.
"One of the benefits that the project brings to people of Sakhalin, is development of Sakhalin infrastructure. The construction of ENL's new office facilities will further contribute to the Yuzhno-Sakhalinsk infrastructure development and on-going beautification of the city. The new facilities will also provide additional business opportunities for local service companies," - said Terni.
The Sakhalin-1 Project, the largest greenfield foreign direct investment project underway in Russia, includes the Chayvo, Odoptu and Arkutun Dagi fields. The Project will recover approximately 2.3 billion barrels (307 million tons) of oil and 17 trillion cubic feet (485 billion cubic meters) of gas. Capital investment on full field development is estimated at more than US$12 billion. To date, in excess of US$ 1.6 billion has been spent on Project activities.
In addition to ENL (30 % interest, operator), Sakhalin-1 Consortium members are the 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 the Sakhalin-1 Project, please contact Glenn Waller (Moscow 095 564-8950) or Michael Allen (Yuzhno-Sakhalinsk 4242 46 88 12) or logon to the Sakhalin-1 website (www.sakhalin1.ru)