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Sakhalin-1 project makes full use of Russian companies
Large-scale project generates significant revenues, provides numerous jobs
MOSCOW, Russia, August 26, 2002 – ABB announced today that more than US$100 million in supply orders
and subcontracts, representing 78% of the US$128 million of commitments made to date under their engineering,
procurement and construction (EPC) contract with the Sakhalin-1 Project, have been placed with Russian
companies. This work is for the development of onshore oil and gas processing and well-site support facilities for
the Sakhalin-1 project. Of these contracts, US$44 million were awarded to Sakhalin Oblast companies.
Among those Russian suppliers and subcontractors recently granted contracts are Amursky Shipbuilding Plant,
Gidromash, SMNG Alaska Projects, United Metallurgical Company, Technicom, Domen and Dalmostostroy.
Amursky received a contract to build 54 diesel and base oil storage tanks. Gidromash successfully entered a bid for
diesel pumps. SMNG Alaska Projects is performing early construction work. Sakhalin Island-based Technicom is
providing inspection and certification services. Domen is drilling water wells and United Metallurgical Company
has produced steel piles for the well site. Dalmostostroy has been awarded a contract for the design, permitting,
procurement, fabrication and construction of an 830-meter steel span bridge at Chayvo. These subcontracts
awarded to Russian companies by ABB are part of its contract for detailed engineering, procurement and
construction (EPC) work for onshore facilities for the Sakhalin-1 project.
The scope of work entrusted to ABB requires competent suppliers with high-caliber skills and top-quality standards.
“We’re committed to maximizing Russian capabilities in this project. ABB’s long-term experience in Russia enables
us to involve potential Russian resources that can contribute to this prestigious assignment,” says George
Arzymanow, project director for ABB Lummus Global.
The Sakhalin-1 project is the largest direct foreign investment into the Russian economy and generates significant
revenues for the Russian Federation. Developed in accordance with a Production Sharing Agreement (PSA), the oil
and gas project is employing numerous Russian material suppliers, equipment manufacturers, engineering and
design institutes, and construction and service companies. In addition, the Sakhalin-1 project will create thousands
of jobs for Russian citizens over the next four years, including jobs on Sakhalin Island.
Exxon Neftegas Limited is the operator for the multinational Sakhalin-1 consortium with a 30 percent working
interest. Other consortium members are the Japanese company Sakhalin Oil and Gas Development Co. Ltd.;
Indian company ONGC Videsh Ltd.; and Russian companies Sakhalinmorneftegas-Shelf and RN-Astra.
ABB (www.abb.com) is a global leader in power and automation technologies that enable utility and industry
customers to improve performance while lowering environmental impact. The ABB Group of companies employs
150,000 and operates in more than 100 countries worldwide, with personnel located in both Moscow and Yuzhno
in support of the Sakhalin-1 Project.
For more information please contact:
ABB Russia (Moscow)
Elena Fedorova
+7 095 9602228 tel
+7 095 9602209 fax
elena.fedorova@ru.abb.com
ABB Lummus Global (Yu. Sakhalinsk)
Ravil Abdulin
+7 4242 72 7027 tel
ravil.abdulin@us.abb.com