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Japan companies can keep terms of their contracts as part of Sakhalin 2 project — Kyodo

It is reported that the Japanese authorities are determined to maintain participation in the Sakhalin-2 project

TOKYO, August 17. /TASS/. Japanese companies purchasing energy resources as part of the Sakhalin 2 oil and gas project, will be able to keep terms of their contracts and volumes of supplies, Kyodo news agency reported on Wednesday citing sources in the industry.

According to the sources, the new operator of Sakhalin 2 approached Japanese energy companies with an offer to conclude contracts on the same terms, including prices and purchase volumes.

Several Japanese companies, including Kyushu Electric Power and Saibu Gas, have already received notice to transfer the project to the new operator, the Nikkei newspaper reported earlier.

The Japanese authorities are determined to maintain participation in the Sakhalin-2 project. They turned to the corporations Mitsubishi and Mitsui, which have shares in the project, with the relevant request.

On August 2, Russian Prime Minister Mikhail Mishustin signed the decree on establishment of Sakhalin Energy LLC, the new operator of Sakhalin 2.

In accordance with the executive order of the Russian President signed on June 30, Sakhalin Energy [previous operator - TASS] shareholders should agree to take participation interests in the created company in proportion to interests in the previous operator within one month. The Cabinet will decide whether to transfer or refuse to transfer the participation interest; in case of refusal it can sell the stake to a Russian legal entity within four months and credit funds from sale at a special account. Mitsui and Mitsubishi have 12.5% and 10% respectively in the project. Russia accounts for 8.8% of all Japanese imports of liquefied natural gas, almost all gas comes from Sakhalin-2.

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