According to a report in its publication “Nikki Asia” on Monday, the Japanese government decided to continue participating in the Russian oil and gas project (Sakhinin -1), despite Exxon Mobil’s withdrawal from it, as Tokyo seeks to obtain stable energy supplies through the project, despite the international sanctions imposed on Moscow.
After the conflict in Ukraine erupted in March, Exxon Mobil, which held 30% of the shares (Sakhlin -1), declared that it would abandon the project.
According to a presidential order from President Vladimir Putin, Russia, on the other hand, established a new business that is handling the project. Putin had asked that the investors decide whether or not to continue the project once it was transferred to the new firm’s control.
The Japanese Ministry of Economy, Trade, and Industry owns 50% of the Japanese corporation “Sodico,” which has a 30% investment in the project, while the remaining shares are held by other investors.
At their conference in May of last year, the group of seven industrialised nations—including Japan—decided to forbid the purchase of Russian crude oil, but they did not specify a deadline for doing so.
Japan obtains 95% of its crude oil from the Middle East, but it thinks that the ownership of Russian projects is essential to guarantee the stability of energy supply.
President Putin of Russia signed a decree on October 7 transferring the (Sakhinin -1) project to a newly formed Russian company. After Exxon Mobil withdrew, it is anticipated that a division of the Russian government oil company “Ross Oil” will operate the (Sakhalin -1) project. Russia also transferred the management of the (Sakhlin -2) natural gas project to a new company, and Japanese investors Mitsoy and Co.
The Russian government approved moving forward after, and Mitsubishi opted to keep their stakes in the project.
India announced that it is adhering to its 20% share in the project, and seeks to keep the same in the new Russian company that will manage the project..
The Russian Energy Project will go forward, Japan decides (Sakhlin -1)
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