TOKYO, August 25. /TASS/. Japan’s Mitsubishi has decided to keep its share in the Sakhalin-2 oil and gas project and will notify the Russian operator about it by the end of the month, the Nikkei newspaper said on Thursday, citing its sources.
Another Japanese company, Mitsui, which also hold a stake in the project, plans to do the same, the newspaper said, adding that the Russian side will have three days to make a final decision on their participation in the project with the new operator upon the receipt of their notifications.
On August 2, Russian Prime Minister Mikhail Mishustin signed a resolution on establishing Sakhalin Energy LLC as a new operator of the Sakhalin-2 PSA project operator with registration in Yuzhno-Sakhalinsk. Andrey Oleinikov, CEO of Sakhalin Energy subsidiary, a current project operator, will be the new operator’s top executive.
On June 30, Russian President Vladimir Putin signed a decree, under which a Russian company will become the new operator of the Sakhalin-2 project, instead of the Sakhalin Energy company. Foreign stakeholders are supposed to agree to their shares in the new company proportionally to their stakes in the former company within a month. Mitsui and Mitsubishi hold 12.5% and 10% stakes in the project, respectively.
Russia accounts for 8.8% of Japan’s import of liquefied national gas. Practically all gas comes through Sakhalin-2.
According to the Nikkei, neither of Japan’s eight companies receiving LNG from Sakhalin-2 has announced its plans to terminate contracts. Tokyo Gas and JERA, a joint venture of Tokyo Electric Power and Chubu Electric Power, have already signed contracts with the new Russia project operator.