Exxon Neftegas Limited is committed to contracting as many Russian companies as possible. Showcasing the skillsets of Russian manufacturing companies through the development of local content is a foundation of our responsible business approach. At Exxon Neftegas Limited, we believe that the development of local content is mutually beneficial for our business and the Far East because it positively impacts the local economy and creates new job opportunities throughout the region.
While striving to maximize Russian content, however, we give preference to vendors that are able to support our objectives, including safety and health, environmental compliance, quality, maximizing profitability and achieving scheduled completion. As of today, Russian companies and joint ventures have signed contracts worth more than 16 billion USD. (with over 70% of all contracts awarded to third party suppliers).
The Joint Committee on Russian Content was implemented around the time the Sakhalin-1 Project began. The committee includes Exxon Neftegas Limited representatives, the Ministry of natural Resources of the Sakhalin Oblast Government, the Ministry of Energy, and the Ministry of Industry and Trade of the Russian Federation. The committee meets on a quarterly basis to address issues related to Russian content in and the Project, and to discuss expert recommendations.