The Sakhalin-2 project has been implemented by Sakhalin Energy LLC under the terms and conditions of the Agreement on the Development of Piltun-Astokhskoye and Lunskoye Oil and Gas Fields on the Basis of Production Sharing (PSA). One of the Company's key PSA commitments and strategic priorities is to maximise the RC year by year and to ensure that Russian Content, in terms of labour, materials, equipment, and contract services, reaches 70% over the lifetime of the Sakhalin-2 project.

Russian Content means the use of Russian labour force, Russian manufactured equipment and materials, as well as services rendered by Russian companies under the project. One of the Company’s key focuses is to foster the development of infrastructure in the region and boost investments.

Russian companies engaged by Sakhalin Energy LLC as vendors and service providers under the Sakhalin-2 project acquire unique experience in working at a hi-tech project where international quality and HSE standards are applied.

In line with the PSA, Sakhalin Energy LLC, as the Sakhalin-2 operator, shall give preference to Russian enterprises if Russian and foreign companies submit technically and commercially equivalent bids. Additionally, Sakhalin Energy shall apply its best efforts to maximise the use of Russian labour force and Russian contractors at all levels, using Russian-manufactured materials and equipment.

To ensure compliance with the PSA and efficient communication with the Russian Party, a Joint Committee has been established that brings together specialists from Sakhalin Energy LLC, Russian Federal Executive Authorities, and the Sakhalin Oblast Government. The purpose of the Joint Committee is to facilitate the engagement of Russian enterprises in the Sakhalin-2 works and procurements.

For more details about Russian Content at Sakhalin Energy LLC, please send a request to SELLC-VDR@sakhalin2.ru.

If you have any questions about reporting, please contact us at SELLC-Vendor-Reporting@sakhalin2.ru.