Crude oil is exported by means of a pipeline which runs from the export tank farm to the sea bed and under the ocean floor to a pipeline end manifold located approximately half a kilometre offshore. There, a flange connects the undersea pipeline to a temporary rubber coated, steel-reinforced loading hose that is then attached to a tanker for loading. During loading, tankers are moored to buoys attached to seabed anchors by cable. A containment boom surrounds the tanker during loading operations to collect any spillage. Marine exports from Okruznhoye field site are seasonal depending on the presence of pack-ice which accumulates during the winter months. The typical navigation season is June through November.

The refinery has a capacity of up to approximately 4,100 BOPD of diesel, gasoline, kerosene and fuel oil (mazut). It was originally designed and built by Russell Industries Inc. of Tulsa, Oklahoma and then re-constructed at the Okruzhnoye field site with Hudson Engineering of Houston, Texas as primary contractor. The refinery began operations at Okruzhnoye field site in May 1994. The Company believes the capacity of the refinery can be increased from 4,100 BOPD to approximately 8,200 BOPD by installing an additional distillation tower, product cooler and re-boiler furnace. In the event increased oil production and market conditions justify this capital project, the Company intends to expand the refinery’s capacity accordingly.

To transport refined products for sale to local markets, Petrosakh owns a fleet of 12 tanker trucks and a gravel-surfaced road that connects Okruzhnoye to the Pervomaisky rail terminal. At Pervomaisk, Petrosakh has a tank farm with product storage of 5,000 barrels, and rail loading racks to transfer products onto railcars for shipment to its customers, primarily located in Yuzhno-Sakhalinsk.