Japan Collects Data to Predict Impact of Russia’s Sakhalin-1 Decision – Reports

TOKYO (UrduPoint News/Sputnik – 08 October 2022) Japan is collecting data to determine possible impact on the Russian-led Sakhalin-1 energy project after President Vladimir Putin instructed to establish a new national operator for the project earlier this week, Japanese broadcaster NHK reported on Saturday, citing an economy ministry official.

On Friday, Putin instructed the government to appoint a new operator for the Sakhalin-1 oil and gas project to replace ExxonMobil subsidiary Exxon Neftegas Limited, which remains the operator of the Sakhalin-1 project and owns 30% of the shares. .

“It is an important source of energy supply beyond the Middle East. Its importance remains unchanged in terms of energy security,” an official said, adding that Japan was gathering data to forecast a possible impact. of Moscow’s decision, as quoted in the report. .

The Russian energy and raw materials company Sakhalinmorneftegaz-Shelf, founded by Rosneft, will retain control of the Sakhalin-1 project until all stakes are distributed, which will allow for an extension of the mandate at a later date. Foreign companies are required to notify Moscow if they would continue to participate in the project within a month.

In March, ExxonMobil announced its intention to withdraw from the project and declared force majeure in April, significantly reducing oil and gas production at the project.

On August 3, the company announced that it planned to transfer its operating activities on the project to another undisclosed legal entity. The other shareholders of the Sakhalin-1 project are the Japanese Sodeco with 30%, the Indian ONGC with 20% and the Russian Rosneft with 20%.

Previous G20 members pledge to develop IT infrastructure: minister
Next US implements sweeping export rules targeting Chinese chip industry