Deputy PM: New firm to replace Shell in Sakhalin-2 in 2022

MOSCOW, Oct 14 (PRIME) -- A new company will replace British-Dutch hydrocarbon giant Shell in the Sakhalin-2 oil and gas project until the end of 2022, Deputy Prime Minister Alexander Novak said on Friday during the Russian Energy Week forum.

“A decree was issued on Sakhalin-2. Its operator was replaced with a Russian one. It was Shell previously, but now it is Gazprom. We gave everyone who was a shareholder of the project before an opportunity to remain there. The Japanese firms decided to do that, Shell did not. It rejected participation in the project. A new shareholder will be there, it will be defined until the end of the year and receive the share that Shell left,” he said.

All previous conditions of the production sharing agreement and taxation of the Sakhalin-2 project will remain the same, he added.

The Russian government established Sakhalinskaya Energiya LLC as a new operator of the Sakhalin-2 project on August 19 because of unfriendly actions of some foreign countries. Russian gas giant Gazprom owned 50% plus one share in the previous operator, while Shell had a stake of 27.5% minus one share, and Japan’s Mitsui and Mitsubishi had the stakes of 12.5% and 10%, respectively.

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