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Russian government creates new operator for Sakhalin-1 project

The new limited liability company will receive the entire property of the consortium within the framework of the Sakhalin-1 PSA

MOSCOW, October 7. /TASS/. Russian President Vladimir Putin ordered to create a new operator for the Sakhalin-1 production sharing agreement (PSA) project, which will receive rights and responsibilities of project participants and Exxon Neftegas Limited, the project operator.

The relevant decree of the head of state was posted on Friday. According to the document, the new limited liability company will receive the entire property of the consortium within the framework of the Sakhalin-1 PSA. Subsidiaries of Rosneft, the project stakeholder, will receive 20% in total in the new operator, in accordance with the company’s share in the project. Sakhalinmorneftegaz-Shelf will have 11.5% and RN-Astra will hold 8.5%. Remaining 80% will be with the new operator until they are transferred to other participants.

Foreign participants in the Sakhalin-1 projects should submit notices to the government within one month on their consent to take ownership of participation interests in the authorized capital of the company in proportion to participation shares held by them in the production sharing agreement.

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