Sakhalin-1 Starts Housing Construction
October 17, Yuzhno-Sakhalinsk -- Exxon Neftegas Limited (ENL), an ExxonMobil subsidiary and operator of the Sakhalin-1 oil and gas project, today announced the award of a contract for construction of a residential complex for Sakhalin-1 Project personnel in Aniva District.As a result of a competitive tender process, the housing construction contract is being awarded to Baltic Construction Company. This announcement adds to the significant share of contracts awarded to Russian companies, already well over $2.3 billion for Phase One of the Sakhalin-1 project.
The ENL residential complex, located approximately 9 km south of Yuzhno-Sakhalinsk, is designed as a self-sufficient development to avoid any extra burden on the local infrastructure. The complex will be integrated into the existing natural setting and include 37 duplexes (74 residential units) and outdoor recreation areas with sports fields and skiing trails.
According to Stephen Terni, President of ENL, the construction of the residential complex in cooperation with Russian contractors will further establish ENL’s presence on Sakhalin Island while reinforcing Sakhalin-1 Consortium 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 housing will further contribute to the Yuzhno-Sakhalinsk and near area infrastructure development and on-going beautification of the South of Sakhalin island. The new Office and Housing facilities will also provide additional business opportunities for local service companies," - said Terni.
The Sakhalin-1 Project, the largest greenfield foreign direct investment project in Russia, includes the Chayvo, Odoptu and Arkutun Dagi fields. It has potential recoverable resources of 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 over US$12 billion. The first phase investment will total approximately US$5 billion, with more than US$1.7 billion spent on Project activities to date.
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 information, please contact FESCO's press secretary Aleksandra Saveleva (Vladivostok, Phone: +7 (4232) 52 10 76, e-mail: 41401@41.fesco.ru).
For more information on the Sakhalin-1 Project, please contact Glenn Waller (Moscow 095 564-8950) or Michael Allen (Yuzhno-Sakhalinsk 4242 66 88 12) or logon to the Sakhalin-1 website (www.sakhalin1.ru or www.sakhalin1.com).