Mitsui announced the confirmation of the application for Sakhalin-2 from the Russian authorities

TOKYO, Aug 31 – PRIME. The Japanese company Mitsui&Co announced that it received confirmation from the Russian government of its application for participation in the Sakhalin-2 project, a message about this is posted on the company’s website.

On Tuesday, August 30, the Russian government, as follows from its order, allowed the Japanese company Mitsui to transfer a 12.5% ​​stake in the new operator of the Sakhalin-2 project.

“We sent a statement to the Russian government to retain the stake in Sakhalin-2, which is under the control of the new company on August 25, on August 30, local time, we received a notification that the Russian government recognized this statement,” the company said in a statement. .

The company also reports that it plans to “conduct discussions in connection with maintaining its share in the project,” and that there are no changes in the plans and business prospects announced on May 2 for the period until March 2023.

“Our company respects the sanctions imposed by the international community, but at the same time, taking into account the (need) stable supplies, we will continue to discuss the further direction (of actions) together with the Japanese government, stakeholders (stakeholders – ed.), including project partners, and will act according to the situation,” the company said in a statement.

On August 3, the Government of the Russian Federation decided to create a new operator of the Sakhalin-2 project in the person of Sakhalin Energy LLC with registration in Yuzhno-Sakhalinsk. The new operator will replace Sakhalin Energy Investment Company Ltd. It will be considered created from the date of entry in the Unified State Register of Legal Entities (EGRLE) information about the creation of the company. Andrey Oleinikov, the current head of the Russian branch of Sakhalin Energy, will become the company’s manager.

In June, Russian President Vladimir Putin signed a decree on special economic measures in the fuel and energy sector in connection with the unfriendly actions of foreign states. The decree prescribes the change of the operator of the large oil and gas project “Sakhalin-2” to a new legal entity, which will transfer the rights and obligations of Sakhalin Energy. The property of Sakhalin Energy will be transferred to the ownership of the Russian Federation with simultaneous transfer for free use to the new Sakhalin-2 operator. In Sakhalin Energy, Gazprom owns 50% plus one share, Shell – 27.5% minus one share, Japanese Mitsui and Mitsubishi – 12.5% ​​and 10% respectively. Gazprom retains its stake, while foreigners must declare a month in advance whether they agree to accept the same stake in the new operator. Then the Russian government will decide in three days whether to transfer or refuse. The untransferred shares will be sold, and the foreigners will receive the proceeds to a special account minus the damage caused by them.

Sakhalin-2 is an oil and gas project that develops two oil and gas fields in the northeast of the Sakhalin shelf – Piltun-Astokhskoye (mainly oil) and Lunskoye (mainly gas). The infrastructure includes three offshore platforms, an integrated onshore processing facility, an oil export terminal and an LNG plant with a design capacity of 9.6 million tons per year.

The project provides Japan with about 9% of all LNG it imports. The country’s government has repeatedly stressed the importance of the project to ensure stable gas supplies to Japan at reasonable prices.