In Russia, the authorization for the Sakhalin-2 oil and gas project has shifted to a newly established entity based in Yuzhno-Sakhalinsk. Access to information about the founders and shareholders of this operator remains restricted. Details about the new organization are accessible through the Unified State Register of Legal Entities.
The new company is intended to succeed the previous operator, Sakhalin Energy Investment Company Ltd. The head of Sakhalin Energy’s Russian division, Andrey Oleinikov, is recorded as the chairman of the updated structure. The registered capital of the enterprise stood at 10 thousand rubles at the outset.
Towards the end of June, a presidential decree announced the creation of a Russian-registered entity tasked with the production of liquefied gas from Sakhalin-2. This decree also stated that all rights and obligations of the project operator would be transferred to the new company.
In July, trade press reported that discussions were underway between the Japanese government and major investors to preserve their stakes in Sakhalin-2. The talks were prompted by Moscow’s decision to designate the new Russian LLC as the project’s operator. By August, the Cabinet in Japan indicated that Mitsui and Mitsubishi should participate in Sakhalin-2 under the updated framework.
As of the latest arrangements, the ownership structure for the project is concentrated with Gazprom holding 50 percent plus one share, Shell possessing about 27.5 percent minus a single share, and the Japanese investors Mitsui and Mitsubishi holding roughly 12.5 percent and 10 percent respectively. Under the presidential decree, Gazprom will retain its stake by acquiring an equivalent share in the new operating entity, while the stakes of the other Sakhalin Energy shareholders will be transferred to the new company as part of the reorganization.
News from late July indicated that Shell remained engaged in negotiations to exit the Sakhalin-2 project in line with the existing legal agreements. These developments reflect ongoing adjustments to the project’s governance and ownership structure as Russia implements the operator transition.