Russia To Establish New Firm For Sakhalin - 2 Project
The Russian government says it has decided to establish a new firm to take over the Sakhalin-2 oil and gas project in the Far East. Japanese companies have stakes in the project.
It also said on Wednesday that the new firm will be based in Yuzhno-Sakhalinsk, the main city of the Sakhalin region.
Sakhalin Energy Investment Company now operates the project. In addition to Russia's state-affiliated gas firm Gazprom, Britain's Shell has 27.5 percent stakes, and two Japanese trading houses, Mitsui & Co. and Mitsubishi Corporation, have 12.5 percent and 10 percent stakes, respectively, in Sakhalin Energy. Part of the project's liquefied natural gas output is supplied to Japan.
On June 30, Russian President Vladimir Putin signed an order to establish a new firm and transfer Sakhalin Energy's assets to it.
On Tuesday, the government called for the necessary registration process to be carried out within three days.
Putin's order requires the foreign companies to inform Russia of whether they agree to the transfer of shares within a month from the launch of the new firm.