Sakhalin Energy operates Sakhalin-2 project under the Production Sharing Agreement (PSA) concluded with the Russian Federation in 1994. One of the key PSA commitments and strategic priorities of the company is to maximise, year after year, the amount of Russian labour, materials, equipment, and services, and to ensure that this volume reaches 70% over the entire Sakhalin-2 project.
Russian Content means the usage of Russian labor, materials, equipment and services. Also important task for the company is local infrastructure development.
Participation in the Sakhalin-2 work scope means not only profits for a supplier but also unique experience of work on high-tech offshore project under strict international standards of quality and HSE.
According to the PSA Sakhalin Energy should give preference to a Russian enterprise in case of existence of tender offers from both a Russian enterprise and a foreign company, equivalent with regard to proposed prices, quality and performance time and in general satisfying the Sakhalin-2 project requirements. Sakhalin Energy should ensure maximum participation of Russian citizens and utilisation of Russian materials.
In order to maintain PSA requirements and support a communication channel between Sakhalin Energy, the Russian Party and Russia's industrial organisations a Joint Committee is set up. The Joint Committee is a team of the Sakhalin Energy employees, representatives of the RF executive authorities and Sakhalin Oblast Government.