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Sakhalin Energy Highest A+ category ("Leaders") in the all-Russian project "Leaders in Corporate Philanthropy" VESTI APRIL 2021 Sakhalin Energy congratulation Read in this issue remained a competitive and reliable Energy to enter the list of top five em- In Dialogue with the Team supplier to Asia-Pacific. In 2020, as ployers in Russia’s energy sector. In The Head of Sakhalin Energy met with we faced unprecedented challenges, return, even in the current challenging the employees of the company’s produc- Sakhalin LNG satisfied about 4.6% times, when our revenue has shrunk tion facilities and subdivisions. During the online meeting, Roman Dashkov spoke of the total Asia-Pacific market de- significantly due the economic crisis about the key events of the past year and mand, topping the 2019 figure. The and many other industry players have outlined plans for 2021 company successfully sold a record had to downsize their business and lay director’s column .......................................2 41 LNG spot cargoes. Despite the low off employees, Sakhalin Energy has Six and a Half Thousand oil price environment, we managed made every effort to continue paying Kilometres to Go to generate steady cash glow and exe- competitive salaries and offering ben- This year, representatives of one of the cute favourable deals with our buyers. efits to its employees, as well as pro- most enigmatic and romantic professions will celebrate their professional holiday Improving cost management and viding opportunities for career growth with a special feeling. And there is an ex- reducing unscheduled LNG defer- and self-actualisation. planation for that: Geologist’s Day turns ment are the key contributors to Dear colleagues, this time of 55 years old. A word to our heroes of the occasion... Sakhalin Energy’s competitiveness change gives us new development profession ...........................................12-14 facing market volatility. opportunities. Our impressive per- All of our achievements stem from formance will undoubtedly serve as Incoming! teamwork, where applying a proac- a foundation for further work in line There is very little left to the finish line DEAR COLLEAGUES, of our marathon, but who will enter the On behalf of the Committee of Ex- tive approach across the entire chain with our growth strategy. We all know top three leaders of the tournament table, ecutive Directors and in my personal of operations ensures our business full well that our future success de- still remains an intrigue. capacity, I would like to congratulate success. This is directly reflected in pends on how much effort we invest Winter safety marathon ........................ 19 you on the occasion of our company’s our best-ever LNG production (11.62 in it today. That is why we all need to Ski for Good Deeds 27th birthday. million metric tonnes) in 2020. stay focused and work as hard as pos- Sakhalin Energy employees chose a great The global energy sector is going Our shareholders have acknowl- sible. We have a lot of things to build way to support the socially vulnerable groups of the island region – see the pho- through a turbulent period, and the edged and praised our process safety and create going forward. to report from the scene! year 2020 brought on a new chal- and asset reliability, which propelled I am certain that Sakhalin Energy photostory ................................................ 20 lenge, the COVID-19 pandemic, Sakhalin Energy to the top place will pass this test with flying colours, which further aggravated the already in Shell’s Integrated Gas Reliabili- as it has always done, and would like difficult situation, despite all of this, ty League Table. This award reflects to express my most sincere gratitude Sakhalin Energy Sakhalin Energy continues to operate international recognition of our per- to all of you for your professional ef- Tops Shell’s Well safely and reliably, meeting all of its formance which would be impossible forts and attitude. Thanks a lot for commitments. without Sakhalin Energy’s profes- your good work! Integrity Rating Looking back at the past year, we sional team. By casting their votes, n Roman Dashkov Read more on page 10 can confirm that the company has our employees have helped Sakhalin Chief Executive Officer 2 april 2021 director’s column In Dialogue with the Team Roman Dashkov, Chief Executive Officer, held a meeting with asset and department teams. The virtual townhall event* agenda of company business activities. En- covered last year’s highlights, business suring our financial robustness which, performance, HR issues, as well as among other things, helps us to main- Sakhalin Energy’s priorities for 2021. tain a competitive EVP, will remain a Outlining the company’s business key priority. performance, the CEO pointed out During the townhall meeting, asset that the past year had been extremely team members had an opportunity to difficult in the context of challenges directly address the CEO. They asked and the environment the company questions about the impact of today’s had to face. Nevertheless, Sakhalin challenging market conditions on Energy had managed to achieve ex- the company’s long-term LNG com- cellent performance and to complete mitments, about Sakhalin Energy’s significant maintenance and upgrade growth projects, changes in rotational scope. Throughout the year, all assets schedules, as well as possible expan- had demonstrated excellent reliabil- sion of the EVP. ity, resulting in above-target scorecard performance. Commenting on the hottest topics, “Last year, we were forced to com- Roman Dashkov pointed out that pletely restructure our operations”, Sakhalin Energy had developed a long- Roman Dashkov pointed out. “In spite term growth strategy that allows the of this, we managed to “By 2030, we will have to come up exceed our production with a growth project funnel that will targets by almost 10%. allow us not only to sustain our cur- In this challenging en- rent production, but possibly expand vironment, we had a it. Our objective is to find the right record low number or management solutions and improve unscheduled shutdowns the efficiency of our operations to sus- across the integrated gas tain our EVP or improve it”, said the chain.” CEO. In order to move for- He then pointed out that the com- ward with confidence, pany continues to honour its commit- the company will need to complete detailed ments to staff and keeps looking for equipment diagnostics improvement opportunities. “We are and further ramp up its indeed proud of the fact that we have upgrade and modifica- managed to avoid downsizing, as op- tion efforts as part of the posed to many other companies in the 2021 Turnaround Cam- oil and gas sector which have experi- paign. Updating our enced massive layoffs. Our Employee Corporate Management Value Proposition stays strong, both in System, upgrading our terms of salaries and in terms of bene- business processes and fits. For instance, every year we review optimising our cost base which services covered by our medical to stay within budget insurance are in demand, as well as the The meeting began with the ceremony of awarding the best employees with the distinction “For outstanding achievements and contribution limitations will be the to the development of the company.” Based on the results of work for 2020, the Committee of Executive Directors awarded the highest award framework of opportunities to supply focus areas for 2021 to the company to Konstantin Kokorin (CEO Directorate), Marina Kim (Financial Directorate), Sergey Kirichenko (Technical Directorate), such services.” Ivan Shamonaev (Production Directorate), Alexander Lapin (CEO Directorate) across the entire range In conclusion, Roman Dashkov added that, as the company faces company to focus on effectively pur- a rapidly changing environment, suing its goals for many years to come. learning from recent experience and “In view of our revised long-term good prioritisation must become the plans, the company now places special cornerstones of success. “Our per- emphasis on an effective and efficient formance will depend, to a large ex- backfill strategy. With regard to ex- tent, on us consolidating our efforts to panding our LNG production capacity, make prompt, flexible and progressive please note that LNG Train 3 remains managerial decisions across the entire part of our growth projects portfolio. range of activities, real-time decisions Building Train 3 is a super-competi- that address challenges we face every tive option in terms of CAPEX spend moment. This is an objective for us, per MTPA, and the most feasible way company leaders who comprise the to expand existing LNG production Committee of Executive Directors; capacity. It is up to the Russian gov- however, you must realise that it in- ernment to decide on the best way volves a number of lower-tier object- to utilise feed gas produced offshore ives driven by each and every one of Sakhalin Island. We are actively en- you”, added the CEO. gaged in these discussions – we have *You can find the video recording of presented our proposals and will await the townhall meeting, as well as the full further steps from Russian Federal au- During the townhall meeting, employees at the production facilities had the opportunity address from the CEO, on our internal to ask the Chief Executive Officer a question thorities”, stated Roman Dashkov. web site. 3 april 2021 visit “There Is No One-Size-Fits-All Solution” Roman Dashkov, the company’s Chief Executive Officer, paid a second working visit to the OPFС. The delegation, led by CEO Roman Dashkov, included Production Director Grzegorz Kulawski, Technical Director Timur Gafarov, HR Director Alexander Sheykin, as well as managers of Sakhalin Energy’s related units, such as the Asset Logistics Group, the Corporate Health Section, etc. Sakhalin Energy’s only facility, which is currently in the construction phase, remains under the close scrutiny of the company management.
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