August 26 2022
The “Sakhalin-2” project is operating as normal: excavation, production and shipment of hydrocarbons are carried out according to the schedule under existing contracts. This was announced by the new operator of the project “Sakhalin Energy” LLC, Interfax reports.
“Sakhalin Energy” LLC, the operator of the “Sakhalin-2” project, continues to operate in full within the framework of the production sharing agreement. The production and shipment of hydrocarbons are carried out as usual in accordance with the current schedule and the current market situation,” the report says.
Mr. Roman Dashkov, Chief Executive Officer of the company, added through the press service that Sakhalin Energy is actively looking for new markets and expanding its customer portfolio.
The Russian operator of the project officially started work on 19 August. It was noted that all rights and obligations, as well as the personnel of “Sakhalin Energy”, were transferred to the new structure, while maintaining the current conditions of social security and remuneration. The website of the project operator changed its name from “Sakhalin Energy” to “Сахалинская Энергия”.
All these actions were carried out in pursuance of the June 2022 presidential decree “On the application of special economic measures in the fuel and energy complex in connection with the unfriendly actions of certain foreign states and international organizations.” According to it, the operator of the “Sakhalin-2” project being implemented under a Production Sharing Agreement, “Sakhalin Energy Investment Company Ltd.” from Bermuda, was replaced by a Russian LLC.
According to the decree, a Gazprom group company “Gazprom Sakhalin Holding” LLC will receive a share of 50.00000001378317%. The remaining 49.99999998621683% at the time of establishment remain on the balance sheet of “Sakhalin Energy” LLC itself. The current foreign shareholders of Sakhalin Energy (“Shell”, “Mitsui”, and “Mitsubishi”) must agree within a month to receive a stake in a new Russian LLC.