Sahkalin-1 Awards Transportation Contract
Exxon Neftegas Limited has awarded Sakhalinskiye Aviatrassy a major five-year contract for aviation services. The contract is among the largest ever awarded to a Sakhalin company in the framework of the Sakhalin shelf projects.
Under the contract, SAT will provide exclusive private flight operations for domestic flights on Sakhalin and to the Russian mainland, as well as internationally to Japan. SAT will acquire two 34-passenger turboprop aircrafts, and train up to thirty local staff to operate and maintain them.
The contract 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 4.0 billion capital investment, the first phase of the Sakhalin-1 project will be the most significant investment under a Production Sharing Agreement in Russia, and the first to include Russian partners (Rosneft and SMNG), in addition to SODECO (Japan), ONGC Videsh Ltd. (India), and the operator ENL, a subsidiary of the American oil major ExxonMobil. Neil Duffin, President of ENL, stated that "we will continue to seek Russian expertise and integrate our collective skills and experience to address the many challenges involved in this project to achieve the maximum value for all stakeholders. We will also continue working to identify and contract qualified Russian companies and organizations with the skills and experience required to carry out the work in a safe and environmentally responsible manner."