Sakhalin Energy — 20 Years of “Firsts” as Russia’s Pioneer in Offshore and LNG

By Pat Davis Szymczak, May 5, 2014

our goal is to prevent or mitigate any adverse impact, with prevention prevailing over mitigation. Thanks to using oil spill prevention measures, Sakhalin Energy enjoys a year-to-year superiority as the best “oil produced/oil spilled” performer.

Our company is operating in strict compliance with Russian laws, applying the world’s best environmental practices. We  apply industrial environmental monitoring at our production facilities for protection of ambient air and bodies of water and for sustainable water use and waste management. We are also implementing local monitoring, including a range of environmental programs at our project sites.  

OGE: How has Sakhalin Energy contributed to the community on Sakhalin Island? How has the project contributed over the years to the employment base and quality of life of residents on the island?

Dashkov: I have no doubt our project contributed immensely to the present-day standing of Sakhalin as one of Russia’s most successful regions, with one of the lowest unemployment rates in Russia. We pride ourselves on having earned the trust of the people of Sakhalin in that the company is operating in an open and honest manner, and is fully transparent.  

The Russian party’s cumulative take from Sakhalin-2 has exceeded $7.5 billion over the 20 years of Sakhalin Energy’s work. In 2013 alone, we paid $2.6 billion to the Russian budget, of which more than $1.7 billion went to Sakhalin.

In addition to these purely financial aspects, Sakhalin Energy’s presence on the island has boosted the development of new businesses and job creation. We have awarded over $18 billion in contracts to Russian companies. The knowledge and skills that local companies gained from working with Sakhalin Energy made them more competitive, with a better contracting potential. As I have mentioned, the unemployment rate in Sakhalin Region is one of the lowest in Russia.  

The company has many social projects in Sakhalin. When deciding to undertake a social project or program, Sakhalin Energy is based on whether such a program is feasible, has a long-term potential and can benefit the community. Priority is given to such areas as education, safety, environment, health, culture and the arts. The focus is on strategic long-term partnership programs involving third parties. Our best known long-term programs are: “Small Grants – Big Deeds” that celebrated its 10th anniversary in 2013 and has now been transformed into the ENERGY Social Initiatives Fund; the Sakhalin Road Safety Program involving Sakhalin Energy, Sakhalin Road Safety Inspectorate and Sakhalin Government; the “Hurry Up for Good Deeds” corporate program to support the employees’ charitable initiatives; the well-known “What to Do in Emergency Situations” program aimed at developing safe behaviour in children and teenagers; the “Korsakov Sustainable Development Partnership Council” and, last but not least, the internationally renowned “Sakhalin Indigenous Minorities Development Plan”. I might add that our unique approach that human rights should be always respected by business communities, as well as our indigenous people partnership programs, have been acknowledged as best practices both in Russia and internationally. 

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