A contract to charter an icebreaking vessel to support the Sakhalin-1 project's offshore operations

14 April 2003
FESCO announced that it had received a contract to charter an icebreaking vessel to support the Sakhalin-1 project's offshore operations from Exxon Neftegas Limited, the project's operator.

The contract scope of work includes five-year term charter of a new purpose-built ice breaking supply vessel to support offshore operations at the Orlan platform plus the charterer's option for two 2-year extensions. The vessel construction will begin in the second half of 2003 with delivery in the third quarter of 2005. Under the Charter Party Agreement, FESCO will provide supply and ice breaking services during five years after delivery of the vessel.

According to Yevgeni Ambrosov, FESCO's Director General, the company got the contract by winning a tender, which was definitely recognition of the company's leading role in the Far East marine transportation services market, its high professionalism, and its ability to meet the extremely high standards that Exxon Neftegas Limited demands of its partners. FESCO greatly appreciated the Consortium members' choice and is looking forward to a greater role in the Sakhalin-1 project in the future and getting new contracts to support Sakhalin offshore operations.

Vladivostok-based Far Eastern Shipping Company (FESCO) is the largest shipping company in Eastern Russia. Founded in 1880, FESCO owns and operates a fleet of more than 80 vessels, including 22 containerships, 11 refrigerator vessels, over 30 bulk, timber and other dry cargo carriers along with a number of icebreakers, passenger and harbor vessels. The company employs over 4,000 people on ship and shore, and manages a network of overseas subsidiary agencies and representative offices.

The Sakhalin-1 Project, the largest foreign direct investment project in Russia, includes the Chayvo, Odoptu and Arkutun Dagi fields. It has recoverable resources of approximately 307 million tons (2.3 billion barrels) of oil and 485 billion cubic meters (17 trillion cubic feet of gas).

In addition to ENL (30 % interest, operator), the Sakhalin-1 Consortium members are the Japanese company Sakhalin Oil and Gas Development Co., Ltd. (30 %), Indian company ONGC Videsh Ltd. (20 %) and two Russian companies, Sakhalinmorneftegas-Shelf (11.5 %) and RN-Astra (8.5 %).

For information, please contact
Phone: +7 (4232) 52 10 76, e-mail: 20006@20.fesco.ru

For more detailed information on the Sakhalin-1 project, please contact Glenn Waller (Moscow 095 564-8950) or Michael Allen (Yuzhno-Sakhalinsk 4242 46 88 12) or logon to www.sakhalin1.ru.

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