Japan intending to secure its participation in Sakhalin-2 project: Reports

The Japanese government is intending to secure its participation in the Russian Sakhalin-2 oil and gas project, Japanese news agency Kyodo reported on Saturday, citing government sources.

The government is currently engaged in consultations with Japanese companies Mitsui and Mitsubishi, participating in the project, according to the report.

Russian President Vladimir Putin signed a decree in early July that allows Russia to create a new project operator that will take charge of Sakhalin-2 from Sakhalin Energy Investment Co. Russia's Gazprom will keep a majority stake of 50% plus one share. Shell has already promised to sell its 27.5% stake, while Mitsui and Mitsubishi reportedly plan to hold on to their 12.5% and 10% stakes respectively.

The Sakhalin-2 project is exploring two reserves -- Piltun-Astokhskoye (mainly oil) and Lunskoye (mainly gas) -- in the northeast of the Sakhalin shelf in the Okhotsk Sea. The infrastructure includes three offshore platforms, an integrated onshore processing facility, an oil shipping terminal and an LNG plant with a capacity of 9.6 million tonnes per year. The project gives Japan 10% of its total LNG imports.

Sakhalin-2 accounts for 9% of Japan's LNG imports.

(ANI)

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