Russia will create a new operator for the Sakhalin-1 project

Policy

Tokyo, Oct. 8 (Jiji Press)–Russian President Vladimir Putin on Friday signed a decree to create a new operator for the Sakhalin-1 oil and natural gas project in Russia’s Far East.

The move is expected to affect Sakhalin Oil and Gas Development Co., or SODECO, a Japanese government-backed consortium that has a roughly 30% stake in the project.

Putin made a similar decision in July to take control of the Sakhalin-2 oil and gas project.

Foreign participants in the Sakhalin-1 project will have one month after the creation of the new operator to submit opinions to the Russian government on their consent to take possession of the new entity, the decree said.

SODECO participants include trading houses Itochu Corp. and Marubeni Corp., and Japan Petroleum Exploration Co., or JAPEX, in addition to the Japanese government.

[Copyright The Jiji Press, Ltd.]

Jiji Press

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