OREANDA-NEWS. On February 27, 2008 the Wild Salmon Center and the Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) announced a landmark agreement that will jointly fund a three-year $8,8 million program for wild salmon conservation efforts on Sakhalin Island, Russia, reported the press-centre of Sakhalin Energy.

The conservation work will be conducted through the Sakhalin Salmon Initiative (SSI), launched during an international conference in October 2006. SSI is a collaborative effort to promote conservation and sustainable use of wild salmon and the ecosystems upon which they depend, to build institutional capacity for conservation and to promote sustainable economic development on Sakhalin Island. Sakhalin Energy is the founding sponsor of the SSI.

“This is a historic agreement that will help protect wild salmon in the Russian Far East,” said Guido Rahr, President of the Wild Salmon Center. “We are pleased that Sakhalin Energy has made the commitment to support the Sakhalin Salmon Initiative, and are enthusiastic about engaging the operator of the world’s largest integrated oil and gas development project in this important effort to support salmon conservation and sustainable development.”

“We believe that all economic development must preserve and, if possible, enhance the environment,“ said Ian Craig, Chief Executive Officer of the Sakhalin Energy. “Sakhalin Energy is pleased that we are able to play a meaningful role in such a landmark sustainable development for the island. This is a special collaboration as WSC is leveraging our contribution with matching support from other sponsors, thus maximising the benefit.”

The SSI is managed by the Sakhalin-based SSI Center and overseen by the SSI Coordinating Committee that includes the Sakhalin Oblast Administration, regional and federal agencies, academic institutions, business enterprises, commercial fishermen, indigenous communities and local and international NGOs. In December 2007, the SSI Coordinating Committee approved a wide-ranging program for 2008. Focal activities include developing a conservation strategy for priority basins in Northwestern Sakhalin; creating a network of local watershed councils; establishing a Sakhalin-wide salmonid monitoring program; promoting sustainable fisheries; building a salmon-focused education center; and supporting local and regional education programs.

Notes to editors:
The Sakhalin Salmon Initiative is separate from the Sakhalin II or other specific oil and gas projects on Sakhalin, and Sakhalin Energy’s participation should be considered an additionality to Sakhalin II project delivery. SSI is not designed to address or replace Sakhalin Energy’s Health, Safety or Environmental obligations under Russian or international laws and agreements.

The Wild Salmon Center is the only international conservation organization working to protect wild Pacific salmon throughout their entire range. The WSC partners with governments, local communities, and businesses to create a network of healthy salmon ecosystems across the North Pacific. The Center’s work is based on the best available science and its conservation solutions support sustainable economies, regional cultures, and the great rivers of the Pacific Rim.

Sakhalin Energy Investment Company Ltd. is the operator of the world’s largest oil and gas integrated project Sakhalin II, with the shareholding structure consisting of Gazprom (50% + 1 share), Shell (27,5% - 1 share), Mitsui 12,5% and Mitsubishi 10%. It is being implemented in two phases. Phase 1 has been producing oil from the Vityaz Complex offshore Sakhalin since July 1999. Production is currently limited to the ice-free period during the summer months. For the Phase 2 two new offshore platforms were installed, onshore processing facility, 800-km long oil & gas pipelines and two-train LNG plant are being constructed on the island. The Phase 2 Project will also enable year-round production from the Molikpaq platform.

The Phase 2 Project is currently about 90% complete, including design, procurement of materials, equipment and actual construction.