ABB, a global leader in power and automation technologies, signed a 987m-dollar contract with US company Exxon Neftegaz Limited on July 22. The contract concerns the construction of the coastal part of the Sakhalin-1 oil and gas producing complex on Sakhalin Island, the press service of ABB's representative office in Russia reported to RosBusinessConsulting today. The contract provides for design work, supplies of materials and equipment as well as the construction of the coastal part of the Sakhalin-1 complex and additional facilities for three well sites. Russian contractors will be involved in the majority of works. ABB and Exxon Neftegaz Limited, the operator of the Sakhalin-1 project, will be responsible for choosing Russian companies for the project.
It is worth mentioning that Sakhalin-1 is a major project based on the attraction of foreign investments in the economy of Russia. It covers three major oil and gas fields and will ensure the production of 2.3bn barrels (307m tons) of oil and 485bn cubic meters of gas. Oil production is supposed to be started in 2005.