Oil Spill Response

Oil spill prevention and response (OSR) is very important for Sakhalin Energy. The Company addresses this complicated problem through an integrated approach. Sakhalin Energy recognises that the new operation facilities associated with Phase 2 of the project, together with year-round production, carries with it a greater degree of complexity for oil spill response planning. The Company has purchased and received OSR equipment for the operation facilities , held different types of training for operational personnel and has approved and activated OSR Plans to ensure a high level of OSR readiness.

	In line with industry international best practice and RF regulations requirements, Sakhalin Energy has developed Oil Spill Response Plans for each operating offshore and onshore facility (Piltun-Astokhskoye and Lunskoye platforms, the Onshore Processing Facility, Onshore Pipelines, the Oil Export Terminal and the Tanker Loading Unit at Prigorodnoye). All Plans were approved by appropriate authorities at local, regional and federal levels and activated in accordance with the applicable procedure before commissioning and operation started. These OSRPs detail Sakhalin Energy’s procedures and use of the best available and applicable response technologies.
	Sakhalin Energy has an excellent record of spill prevention. Since production operations started in 1999 the total volume of oil spilled at Sakhalin Energy operated assets is approximately 670 litres, while total production was approximately 100 million barrels (12.77 million tonnes) of oil or about one litre for every 22,000,000 litres produced.
	Handbooks covering all OSR plans (plan specific handbooks) can be found at www.sakhalinenergy.com. Work on the remaining specific operational OSR issues (wildlife response, shoreline response, health and safety, etc.) handbooks will be finalised in 2009.
	All Sakhalin Energy’s operational facilities now has complete OSR equipment at a cost of some $US12 million. The OSR equipment for the onshore pipeline system has been placed in the six Emergency Response Depots (ERD) built along the pipeline route. An OSR Contractor maintains this equipment in constant readiness.
	Sakhalin Energy continues to explore the feasibility of using dispersants for possible oil spills in the north-east Sakhalin offshore area. This year a Net Environmental Benefit Analysis (NEBA) was carried out where the effectiveness of dispersants used in combination with mechanical recovery was demonstrated. A workshop about this item is planned for early 2009 in conjunction with the relevant authorities.
	Operational personnel have been trained for specific OSR issues on sites completing OSR Overview/Certification (MorEcoTech, Vladivostok), Environmental Awareness for OSR, Course for OSR equipment operators. Mandatory Emercom courses: Basic Fire Fighting, Emergency First Responders and Emercom ER&OSR courses have also been completed by staff.
	Finally, Sakhalin Energy is committed to further feasibility studies and planning, by initiating and funding projects within the Company, as well as with industry partners and peers.