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The Sakhalin Times: Sakhalin II: Total value of contracts with Russian companies achieves US$ 10 billion

Contracts totalling more than US$ 10 billion have been awarded to Russian companies under the Sakhalin II Project, project operator Sakhalin Energy Investment Co Ltd announced this week. “This outstanding event clearly demonstrates the company’s adherence to the principle of high levels of involvement of Sakhalin, Far Eastern and Russian companies in the Project implementation,” a company press-release said.

The press-release added, “starting in 1996, the Russian Federation companies’ activities have totalled to 191 million man-hours, which is 80% of the total number spent on the Project, and 9.7 million tonnes of Russian materials, that equals 91% of the total volume of materials. At peak this year the project has employed some 20,000 Russians.”

Although the method specified in the Sakhalin II Project PSA calculates the Russian Content based on materials and equipment scope as well as the number of man-hours, Sakhalin Energy said it also aims to maximize Russian Content in money terms of the total value of contracts awarded.

Mr Andrey Galaev, Sakhalin Energy Deputy CEO, said: “On the one hand, the Sakhalin II Project offers Russian companies unique opportunities to adopt technologies which have never been used in Russia before, as for many of them the experience they have gained during the Project implementation can become a stepping stone to the international services market, where they will be able to compete successfully with well-known and established international companies. On the other hand, we would have never achieved such success in the implementation of this global energy project without highly qualified Russian contractors.

One such contract, which has contributed to Sakhalin Energy breaking through the US$ 10 billion contract milestone, was the recently awarded contract to FIAS Amur Ltd. (Komsomolsk-na-Amure) to provide Sakhalin Energy with procurement services. ”

Ms Kira Voytik, Director of FIAS-Amur Ltd., said: “This contract opens vast perspectives for our young company in the international oil and gas market and is a good incentive for further success.”

Prosafe awarded contract

Norwegian semi-submersible service rigs and floating production, storage and offloading (FPSO) vessels operator Prosafe ASA said that it has been awarded a Letter of Intent (LoI) by Sakhalin Energy for the provision of the Safe Astoria accommodation support rig.

The firm duration of the contract linked to the LoI is two years with a one year option, the company said. The Safe Astoria will prepare for the contract and transit to site for operations commencing May 2008.

The total value of the contract linked to the LoI, excluding the option period, is about US $ 67 million. . and its sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.

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