Sakhalin II is a massive, integrated oil and liquefied natural gas (LNG) operation in Russia’s far east. It began commissioning its year-round oil production facilities in 2008. In March 2009, LNG production began adding around 5% to the world’s total LNG capacity. Shell owns 27.5% of Sakhalin Energy Investment Company Ltd (SEIC), the joint venture company that built and will now run the project.

At its peak, the construction effort required 25,000 workers, who built two offshore platforms, more than 1,800 kilometres of pipelines, the LNG plant and the export terminal.

The project’s wide-ranging efforts to mitigate its environmental and social impacts continued throughout the final phase of construction and during start-up. An independent Western Gray Whales Advisory Panel of scientific experts continued to advise SEIC. SEIC also remained an active supporter of the Sakhalin Indigenous Minorities Plan. In 2009, SEIC’s efforts were recognised by its industry peers. It won a distinguished achievement award at the 2009 Offshore Technology Conference for the project’s accomplishments, including its environmental, social and safety performance. In 2008, Sakhalin II won the Russian Ministry of Resources Environmental Project of the year award.