Sixth Production Season Complete at the Vityaz Complex

Sakhalin Energy Investment Company Ltd. announced that the Vityaz Complex offshore Sakhalin had successfully completed its Sixth Production Season. The cumulative oil production for the 2004 season was 11.69 million barrels.

The 2004 Production Season closed on the 11 December 2004 when the Okha floating storage and offloading unit was disconnected from the single anchor leg mooring buoy. The single anchor mooring buoy will be laid down on the sea bottom under full ice management at the earliest possible opportunity.

Throughout the 2004 season, Vityaz crude oil was exported to existing markets in Japan, Korea, China, the Philippines and the USA, and for the first time a cargo was sold to Thailand. One cargo of Vityaz crude was also delivered to the Tohoku Electric Power Co. Inc. in Japan. This represented the first sale of Vityaz crude direct to a power company.

Sakhalin Energy has been successfully producing oil from the Vityaz Complex since July 1999. The Vityaz complex consists of the Molikpaq production platform, a single anchor leg mooring buoy (SALM) and the Okha floating storage and offloading (FSO) unit. It is located on the Astokh feature of the Piltun-Astokhskoye (PA) reservoir offshore Sakhalin. The Molikpaq is the first offshore oil production platform in the Russian Federation.