Environmental Approvals
A detailed, 9 volume Environmental Impact Assessment (EIA) of Phase 1 of the Sakhalin-1 Project was granted a positive conclusion by State Ecological Expert Review of the Ministry of Natural Resources. The corresponding order was signed on July 24, 2002.
This environmental approval was an important milestone in the overall approvals process, allowing Exxon Neftegas Limited to maintain its schedule, leading to first oil production in late 2005.
The Review Panel, comprising 26 leading Russian experts from scientific, technical and environmental agencies of Russian Federation, also considered public input on the project, obtained from public consultation in all project areas, and from two public environmental expert reviews conducted this year by independent public organizations.
The Review Panel concluded that the scope and content of the submitted documentation meet the requirements of appropriate Russian laws and regulations, and demonstrate the environmental feasibility of the planned activities.
In February 2004, In the Ministry of Natural Resources of the Russian Federation approved the positive conclusion of the State Environmental Expert Review (SEER) Panel of the Technical and Economic Substantiation of Construction (TEOC) for Phase 1 of the Sakhalin-1 Project.
The Review Panel, comprising 49 leading Russian experts from the Russian academia, technical and environmental organizations of the Russian Federation, assessed project key design solutions, the waste management and water protection measures, the emergency response preparedness, the economic and social impact of the project, as well as the various measures that will be undertaken to protect marine and land biological resources during project Phase 1 construction and production operations. The Panel also considered public input on the project, obtained from public consultation in the project areas.
The positive SEER conclusion, endorsed with the February 9 MNR Order, completed an essential Technical and Economic Substantiation of Construction (TEOC) review requirement by Russian Federation regulatory authorities. The final TEOC approval by Russia's Glavgosexpertiza in April 2004 was an important milestone that enabled the Sakhalin-1 project to commence the full-scale Phase 1 development construction and production operations of the Sakhalin-1 fields.
These environmental approvals are important milestones in the overall approval process. The positive SEER conclusions recognize ENL's commitment to ensuring the safety of people, the environment, the community and our operations. All Sakhalin-1 Project operations are conducted in strict accordance with Production Sharing Agreement (PSA) requirements and applicable Russian Federation regulations.