The Japanese government has encouraged Mitsui & Co. and Mitsubishi Corp. to participate in the Sakhalin-2 oil and gas project, a move intended to ensure continued access to stable energy supplies for Japan. This stance was articulated by Koichi Hagiuda, the country’s minister of economy, trade and industry, who emphasized the strategic importance of Sakhalin-2 in maintaining reliable gas and oil deliveries. He indicated that his conversation with the Mitsui & Co. leadership highlighted a willingness to consider aligning with the new operator designated for the project, a decision seen as pivotal for Japan’s energy security and regional economic interests as reported by DEA News.
Sakhalin-2 has long been recognized as a cornerstone project for ensuring steady energy flows into Japan, and ministers and industry executives have repeatedly underscored its role in diversifying supply sources and stabilizing market dynamics. The discussions, noted by Hagiuda, focused on the potential benefits of a collaborative framework involving a Russian operator and a major Japanese trading house, with the aim of preserving operational continuity and investment confidence. The reporting indicates that the government views Mitsui & Co. as a strategic partner whose cooperation could help bridge the transition to the new operational structure while preserving long-term energy access, as outlined by DEA News.
Earlier developments included the signing of a resolution by the former Russian Prime Minister Mikhail Mishustin establishing Sakhalin Energy LLC as the new operator of the Sakhalin-2 Production Sharing Agreement project. Under this arrangement, the company would be registered in Yuzhno-Sakhalinsk, and the existing head of the Sakhalin Energy branch was slated to assume the role of director of the newly formed entity. The restructuring was framed as a means to clarify governance, supervision, and operational responsibilities during the transfer of operator status, a move that has attracted close attention from global energy participants and market observers, as reported by DEA News.
In the summer months, Mitsui & Co. remained a potential key participant, with the Japanese conglomerate Mitsui being described as a major general trading company preparing to evaluate its position in light of the operator change. At the same time, Mitsubishi Corp. was highlighted as another significant Japanese player weighing the implications of the new operator framework for asset valuation and project economics. Early estimates placed the value of Sakhalin-2 assets at around 217.7 billion yen, equivalent to roughly 1.6 billion US dollars, reflecting the substantial scale of the project and its strategic importance for energy security considerations in Japan and the broader region, as reported by DEA News.
In July, reports from Kyodo News indicated that the Japanese government was actively engaging with Mitsui & Co. and Mitsubishi Corp. to explore options for retaining their stakes in Sakhalin-2 after Moscow decided to appoint a Russian LLC as the project operator. The discussions underscored the sensitive balance between maintaining influence over strategic oil and gas assets and aligning with Russia’s evolving governance of Sakhalin-2, a dynamic watched by policymakers and market participants across North America and Asia, according to DEA News.