Sakhalin Energy's Social Performance department has received a Special Merit in the 2010 Shell Chief Executive HSSE and Social Performance Awards in the category Excellence in Social Performance.

This is the fourth year that Shell (one of the Sakhalin-2 shareholders) has held the Chief Executive’s HSSE and Social Performance awards programme to recognise and reward outstanding efforts, by individuals or teams, towards improving Shell’s performance in the areas of health, safety, security, the environment and social performance.

The 2010 programme received over 200 nominations. The category of Excellence in Social Performance is for individuals or teams who are helping Shell gain and maintain their licence to operate, through exceptional work with local communities and stakeholders.

The Special Merit Award given to Sakhalin Energy is the recognition of the significant work that the Company has done to address the grievances of local stakeholders.

December 2010.