PricewaterhouseCoopers' official statement regarding “Sakhalin-2” audit

16 April 2007 — PricewaterhouseCoopers (PwC) has been the external auditor for Sakhalin Energy Investment Company Ltd. (SEIC) which is responsible for the Sakhalin II project, for over 10 years, and continues to enjoy a professional relationship with SEIC.

As for an annual review of overall spending which is required by the Production Sharing Agreement (PSA), PwC had performed this work through 2005 under a contract with SEIC. For 2006 onwards this audit to be performed by a local firm. This decision did not relate to any issues associated with quality of services.