Message from the Chief Executive Officer

Welcome to Sakhalin Energy online. The Sakhalin-2 Project, operated by the company, is one of the largest integrated oil and gas projects in the world.

Oil export from our new Prigorodnoye Port in Aniva bay commenced in December 2008. The oil we export is a blend of oil production from our two oil platforms and condensate from our gas field. Our key oil export customers are companies in Japan, Korea and China.

In February 2009 Sakhalin Energy achieved one of the most important milestones of the Project when our liquefied natural gas (LNG) plant – the first in Russia - was inaugurated by the President of the Russian Federation, Dmitry Medvedev. In March we started delivering Russian LNG. Our key LNG customers are in Japan and Korea.

The challenging Sakhalin-2 construction phase is completed and the new major energy source is now building up to full production. The infrastructure we have built on Sakhalin lays the foundation for Russia to become a leading energy exporter to the fast-growing, highly competitive energy markets of the Asia-Pacific and the west coast of North America.

Looking forward, the priorities we have set for 2010 – Safely, Reliability, Cargos and Cost – reflect our transition to full production and greater customer focus.

We hope that you find our website informative. We would like to know your opinion about our site and about Sakhalin Energy. Visit the Contact Us page to send us your views.

On behalf of the shareholders, employees and contractors of Sakhalin Energy, thank you for your interest in our website.

Andrey Galaev