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VesTI DECEMBER 2020 Sakhalin Energy read in this issue Ëèäåð ýêîëîãè÷åñêîãî ðåéòèíãà íåôòåãàçîâûõ êîìïàíèé Ðîññèè From a new reality (WWF Ðîññèè, ãðóïïà ÊÐÅÎÍ) to a new Year The Committee of Executive Directors shares plans for the future and wishes Sakhalin Energy employees a Happy New Year! САХ plans ........................................................2-3 Continuous success Continuous success is akin to continuous improvement, which maintains a stable immunity under harsh pandemics condi- tions. The key achievements of the past year were described by the heads of the company’s divisions. year results .............................................4-7 the Best Lng Plant In one river – twice: in 2020 the LNG plant is again the best among Shell’s gas processing facilities. achievement ............................................12 One stop Behind. One stop Ahead All means are good in the fight, including a creative video contest – a great help in the race for the title of safety marathon champion. Winter safety marathon .......................19 Memories are like pattering, incessant rain, Memories are like never- ending icy snowflakes! greeting Throughout the year, we have run a col- umn dedicated to the 75th Anniversary This year, we are celebrating un- credible domestic and international of the Great Victory. The final page in the der unusual circumstances. Despite organisations. history of this year’s memory was added the objective hardships the corona- Throughout this tough year, our by Ksenia Vedneva virus has brought to the world, all company has demonstrated high 75th Anniversary of the great our production facilities continue to reliability, much-needed flexibility, victory .......................................................24 operate reliably and safely. It is not and the ability to promptly react to A gift Is a Way to say an exaggeration to say that what we challenges. I am sincerely grateful “Be Happy” have accomplished recently is noth- to everyone for passing the test of Gifts for the New Year are not only a ing short of a feat. Amidst a pan- our times with flying colours, the warm and kind tradition. This is magic demic, Sakhalin Energy was able to utmost professionalism, and excep- that children believe in every year with the arrival of the corporate landing of independently carry out a number tional teamwork. I believe that there Santa Claus and Snow Maidens. of uniquely complicated technical is nothing we cannot accomplish to- new Year miracles ..................................27 tasks that enabled the company to gether! successfully complete a shutdown of May sustainable growth and con- production facilities in a short time fidence in a bright future be a worthy More than frame. reward for your efforts. I hope your Dear Colleagues, This past year, the contributions winter holidays will be filled with fun I sincerely wish you a Merry Christ- of Sakhalin Energy to the develop- and laughter! Spend this time with 20 awards mas and a Happy New Year. ment of the global oil and gas sector the people you love and cherish. Take of federal and international These wonderful celebrations have received well-deserved recogni- care of your family and loved ones! levels Sakhalin Energy bring hope that all our plans and Happy holidays! Happy New tion from the Russian Federation au- won in 2020 dreams will come true. But a better thorities, the RF Ministry of Energy, Year! tomorrow will not come on its own – the Russian Union of Industrialists n Roman Dashkov, Read more on pages 13, 14 and 18 we need to actively work for it today. and Entrepreneurs, and many other Chief Executive Officer Current events 12 18 21 23–25 26 27 November November November November November November a «New Wave» media centre was sakhalin energy held a dialogue The «No War» literary and cre- sakhalin energy shared The sakhalin regional library Human Capital Development opened at a school in staro- meeting for the first time ative competition, dedicated to experience at the online First uN received 365 copies of the book agency and sakhalin energy dubskoye village. The project with the public online the 75th anniversary of victory regional Forum on Business and «legends of the uilta Peoples». signed a cooperation is being implemented with the in the great Patriotic War, Human rights in eastern europe edition was released with the agreement support of sakhalin energy has come to an end and Central asia financial support of sakhalin energy 2 december 2020 From a New Reality to a New Year The Committee of Executive Directors shares plans in spades! This once again has proven that our team is made of true for the future and wishes Sakhalin Energy employees professionals, who are always persistent, creative and passionate in overcoming the challenges and solving routine problems amidst the a Happy New Year! hardships. Most notable among these is the successful completion of the Inte- grzegorz KulaWsKi, ProDuCTioN DireCTor grated Gas System Shutdown, despite the pandemic and challenging In 2020, our company and the oil and gas industry globally have faced logistical restrictions. an unprecedented combination of challenges with the COVID pan- I would like to pay tribute to the General Coordinating Committee, demic and sharp drops in prices of oil and LNG. We had to rapid- designated Task Forces and other subdivisions engaged in the epidem- ly adapt to the new reality, adjust our plans and ways of working, to ic prevention and response who have been on high alert for nearly a maintain business continuity and to ensure financial robustness. This year. This is undoubtedly a significant and critical work that requires included a change to remote working for office staff, shifts for rotators a great deal of commitment, and I would like to thank all those who extended plus 14 days observation prior to mobilisation. have directly or indirectly been involved in this process to ensure the Against this backdrop, how did we perform? Process safety results company’s robustness. are impressive – the best performance ever. Shutdown was executed Despite all the rough conditions, we are looking ahead with confi- safely and on schedule. All assets delivered top quartile reliability, con- dence and are already considering the new business reality strategy to tributing to an estimated LNG cargo for the full year – a record! We adopt for the coming years. There is no doubt that the company, too, continued delivery of major projects – OPF Compression, Molikpaq must keep up with times and change to measure up with the today’s rig refurbishment and others. We started operations safely with the requirements and expectations of the employees. We have been elabo- new state of the art AW189 helicopters. Our unit operating cost was rating on the implementation of combined work patterns, office space reduced by 20%. These are tremendous achievements that we should optimisation, company-wide digitalisation and a lot more. be proud of! And there are no ready-made solutions, it’s us who can make the Based on our performance, Sakhalin LNG plant was also recog- company the way we want it to be. nized as Asset of the Year amongst operating units in Shell’s Integrated I wish good health, confidence in the future, achievements and Gas directorate. So this clearly a great team and I am very excited to wins to all of us in 2021! And may the new challenges be exceptionally now be part of it! In 2021, we will no doubt continue to experience a challenging positive. and volatile business environment, but our key priorities remain un- Timur gaFarov, TeCHNiCal DireCTor changed. They start with safety of our people, process safety and asset First of all I would like to thank TD team for ability to adequately ad- dress economic, social and consequent professional challenges of this unprecedentedly complex year. grzegorz Kulawski was appointed as Production Director for Under difficult conditions of remote work at the time of pan- sakhalin energy on 01 November 2020. grzegorz studied elec- demic and overall robustness testing of oil and gas industry we were able to implement all critical projects of the year (while ensuring the tronic and electrical engineering in united Kingdom, and holds maximum production safety), maintain the continuity of planning a doctorate in control theory from university of Birmingham, uK. processes and, more importantly, preserve the integrity of our team. grzegorz Kulawski joined shell in 1998 as a reservoir engineer. I would also like to note the success achieved in the area of continuous He has since held several technical assignments and leadership Improvement and digitalization of production activities, work with roles in various shell group companies, including russia, aus- partners and overall focus on introduction of best national practices tralia and Nigeria. Between 2002 and 2005, grzegorz worked and global innovative technologies. All this has enabled us to lay the as lead reservoir engineer (lunskoye) in the sakhalin-2 project. foundations for implementing priority projects in 2021. I will list some of them. Before joining sakhalin energy as Production Director grzegorz Drilling and gravel pack completion of uERD well stock of Lun- worked as vice President safety for the shell group. skoye field is planned until the end of the next year. Drilling of Sakha- lin Energy’s first 10-km long well of Piltun-Astokhskoye Field is of particular importance. In addition, further planning and preparation integrity, followed by reliability, cargo delivery, costs and growth – all for the drilling of the next group of wells with the use of modern tech- underpinned by operational excellence. The focus areas for 2021 are: nologies, including multilateral wells at Piltun area, infill wells with effective COVID-19 management, ensuring robustness of our barri- new sand-control systems at Lunskoye field as well as drilling new ers, production plan delivery, execution of the biggest Integrated Gas wells at Astokh area after completion of refurbishment of drilling rig Chain turnaround execution, construction of OPFC towards mechan- on Molikpaq platform.