Report: Chinese firms may buy Shell’s stake in Sakhalin-2

MOSCOW, Apr 21 (PRIME) -- Chinese state oil and gas companies CNOOC, CNPC, and Sinopec are in negotiations with British-Dutch oil giant Shell to buy its 27.5% stake in Russian liquefied natural gas (LNG) project Sakhalin-2, Bloomberg reported on Thursday quoting sources familiar with the matter.

The sources told Bloomberg that the negotiations were at the initial stage, and the sale may not be agreed.

Sakhalin-2 is Russia’s first LNG-producing facility. Its operator Sakhalin Energy is owned by Russian gas giant Gazprom with 50% plus one share, Shell with 27.5% minus one share, and Japan’s Mitsui & Co. Ltd with 12.5% and Mitsubishi Corporation with 10%.

At the end of February, Shell decided to leave all the joint ventures with Gazprom and oil company Gazprom Neft, including the Sakhalin-2, Yenisei, Salym Petroleum, and Nord Stream 2 projects. In March, the company also decided to close its chain of gasoline filling stations in Russia.

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