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<P align="center"><font color="#660000"><b><font face="Arial, Helvetica, sans-serif" size="4" color="#990000">Frequent
Legal Issues for Contractors on <br>
Sakhalin Oil and Gas Projects<br>
</font></b></font><font size="2" face="Arial, Helvetica, sans-serif">(Appearing soon in the Russian Energy Law Journal)</font></p>
<p align="center"><font color="#990033" size="2" face="Arial, Helvetica, sans-serif"><strong>Introduction and
Table of Contents</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Construction of the
complex offshore oil and gas projects on the island of Sakhalin is
gaining
momentum as the operators of the Sakhalin I and
II projects, Exxon Neftegas Ltd. and Sakhalin Energy Investment Company,
continue awarding contracts for the completion of installations currently
estimated to reach a total cost of $22 Billion. Contractors and subcontractors
of diverse nationalities are now participating in these gigantic undertakings
that include such varied construction as oil and gas pipelines, offshore
drilling platforms, icebreakers and oil tankers, harbor facilities, the
world’s largest LNG plant, airport improvements, oil spill containment
facilities, office buildings, employee housing, medical facilities and
hundreds of kilometers of road construction with multiple river crossings.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Each contractor and
subcontractor is faced with certain legal issues that are unique to
the specialized
work required by its contract. But
at the same time, there are many common issues encountered by most of
the companies operating on Sakhalin. The Sakhalin office of Russin & Vecchi
International Legal Counsellors has assisted clients in meeting these
requirements on repeated occasions. This day-to-day experience with common
legal concerns was collected and presented at the Sakhalin Oil and Gas
Conference in London in November 2003 by six attorneys from the Russin & Vecchi
Russian Practice Group.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The following articles
summarize the materials presented at Russin & Vecchi’s
Sakhalin Oil and Gas Post-Conference Legal Workshop. Readers who would
like to discuss any of the issues presented in these papers are invited
to contact Russin & Vecchi attorneys at the coordinates listed immediately
after the articles. <br>
</font></p>
<p align="center"><font color="#990033" size="2" face="Arial, Helvetica, sans-serif"><strong>Table
of Contents</strong></font></p> <table width="100%" border="0">
<tr>
<td width="9%"><strong><font size="2" face="Arial, Helvetica, sans-serif">I.</font></strong></td>
<td width="91%"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_I.html">Legal
Theory and Sakhalin Practice</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">II.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_II.html">Management
and Control of a Russian Enterprise</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">III.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_III.html">Meeting Russian
Content under Sakhalin I and II PSAs</a></font></strong></td>
</tr>
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<td><strong><font size="2" face="Arial, Helvetica, sans-serif">IV.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_IV.html">Drafting a Company
Charter: What to Include and What to Avoid</a></font></strong></td>
</tr>
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<td><strong><font size="2" face="Arial, Helvetica, sans-serif">V.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_V.html">Antimonopoly
Considerations of Investments in Sakhalin Projects</a></font></strong></td>
</tr>
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<td><strong><font size="2" face="Arial, Helvetica, sans-serif">VI.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_VI.html">Labor
Contracts: Dos and Don’ts</a></font></strong></td>
</tr>
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<td><strong><font size="2" face="Arial, Helvetica, sans-serif">VII.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_VII.html">Secondment Contracts,
Direct Employment and Body Shops</a></font></strong></td>
</tr>
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<td><strong><font size="2" face="Arial, Helvetica, sans-serif">VIII.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_VIII.html">Extreme North
Considerations</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">IX.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_IX.html">Obtaining Visas</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">X.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_X.html">Annual Quotas
for Foreign Employees and the Sakhalin Administration</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">XI.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XI.html">Procedures for
Obtaining Work Permits</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">XII.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XII.html">Personal Income
Tax Considerations</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">XIII.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XIII.html">Maritime Considerations:
Oil Spill Prevention</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">XIV.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XIV.html">Cabotage</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">XV.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XV.html">Water Use Licensing</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">XVI.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XVI.html">Overview of
the Major Aspects of Licensing Procedures</a></font></strong></td>
</tr>
<tr>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif">XVII.</font></strong></td>
<td><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XVII.html">Leasing
Real Property in Russia: A Lessee’s Perspective</a></font></strong></td>
</tr>
</table> <p><font size="1" face="Arial, Helvetica, sans-serif">The contents of these papers should not be construed as legal advice,
and readers are cautioned from applying this summary information to concrete
factual situations without further legal consultation. Due to space limitations,
the information contained in these articles is not exhaustive. There
are therefore likely additional applicable legal requirements with regard
to most factual circumstances.</font></p>
<p><font size="1" face="Arial, Helvetica, sans-serif">If you would like
to receive a copy of this publication in a Word file, please e-mail
us at </font><font face="Arial, Helvetica, sans-serif"><a href="mailto:[email protected]"><font size="1">[email protected]</font></a></font><font size="1" face="Arial, Helvetica, sans-serif">.</font></p>
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