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With a project the size and scope of Sakhalin-1, there are several entities involved in the procurement process. In all cases, procurement will be done under the supervision, and with the approval of Exxon Neftegas Limited. These purchasing entities and their various roles include:

Purchasing entity: Exxon Neftegas Limited

Role: Supervise and approve all significant procurement. Assure compliance with standards and project objectives. Assure that major contractors support Russian Content goals.

Purchasing entity: Front End Engineering and Design contractor (FEED)

Role: For specific project components, coordinate work of Russian design institutes and lead overall project design and standards work. Coordinate early work elements. Support tender process for selection of major contractors and suppliers.

Purchasing entity: Engineering, Procurement and Construction contractors (EPC)

Role: For a specific project component, perform detailed engineering, procurement of materials, management of subcontractors, and construction management. Phase 1 will have several EPC contracts.

Purchasing entity: Drilling contractors (DC)

Role: For a specific drilling program, assemble and operate the rig and complete the drilling program.

It is important for potential contractors and suppliers to understand the various project components and the identities of their primary customers. For example, many project materials will be supplied to FEED and EPC contractors, although major equipment components and certain critical materials will be procured directly by ENL.

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