Japanese stakeholders in the Sakhalin 1 oil and gas project in eastern Russia will retain their stake in the project by joining a new Russian operator recently established by decree, the industry minister said on Friday, as the project is a key source remains of energy. for resource-poor Japan.
Japan's government and corporations, including major trading houses Itochu Corp. and Marubeni Corp., have invested in the project through Tokyo-based Sakhalin Oil and Gas Development Co. If the Russian side approves the company's plan, Friday's shareholders' meeting will decide that Japan can maintain its stake in the project.
The move comes amid international sanctions imposed on Russia for its invasion of Ukraine.” While Japan relies on the Middle East for more than 90% of its crude oil imports, Sakhalin 1 is an extremely important project as an alternative source outside the Middle East and Middle East,” Economy, Trade and Industry Minister Yasutoshi Nishimura told reporters.
Signed by President Vladimir Putin, foreign business partners had a month from the launch of the new operator in October to decide whether to invest in the new company. Tsuyoshi Hachimura, Executive Vice President of Itochu, commented on its earnings report at a press conference. be incorporated into the new Sakhalin 1 operating company from the point of view of energy security in accordance with government policy.
The government has indicated that Japan, which is heavily dependent on energy imports, will maintain its involvement in the Sakhalin 1 and 2 energy projects despite imposing economic sanctions on Russia for its invasion of Ukraine. US-based Exxon Mobil Corp., a major shareholder in Sakhalin 1, announced its exit from the project in March.
Russia has attracted investments from Japanese trading houses Mitsui & Co. and Mitsubishi Corp. approved in Sakhalin 2, while British oil company Shell PLC, which owned about 27.5% of the shares in the previous company, withdrew from the project.
KYODO NEWS