Japan intends to keep stake in Sakhalin-1 oil project – industry minister

A common view of the liquefied pure gasoline plant operated by Sakhalin Vitality at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. REUTERS/Vladimir Soldatkin/File Picture

TOKYO, Aug 8 (Reuters) – Japan intends to maintain a stake within the Sakhalin-1 oil and gasoline venture in Russia, trade minister Koichi Hagiuda stated on Monday, after Russia briefly banned Western buyers from promoting shares in key vitality tasks.

The venture contributed to diversifying Japan’s vitality provide, Hagiuda informed a information convention.

“Sakhalin-1 is a worthwhile non-Center East supply for Japan, which relies on the Center East for 90% of its crude oil imports,” stated Haguida, the minister for economic system, commerce and trade.

“There is no such thing as a change in sustaining the pursuits of Japanese firms in it,” he stated.

Russia has banned buyers from so-called unfriendly nations from promoting shares in banks and key vitality tasks, together with Sakhalin-1, till the top of the yr, stepping up stress in a sanctions stand-off with the West. learn extra

Sakhalin Oil and Gasoline Growth, a Japanese consortium, owns 30% of Sakhalin-1.

Individually, an Aug. 2 Russian authorities decree gave overseas buyers on the Sakhalin-2 liquefied pure gasoline (LNG) venture a month to assert their stakes in a brand new entity that can exchange the present one. The overseas buyers embody Royal Dutch Shell (SHEL.L) and Japanese buying and selling homes Mitsui & Co (8031.T) and Mitsubishi Corp . learn extra

Hagiuda reiterated that Japan supposed to have the Japanese buying and selling homes sustaining stakes in Sakhalin-2. learn extra

“We’ll want to think about particular measures after confirming particulars of Russia’s resolution,” he stated.

“The private and non-private sectors will work collectively to make sure a steady provide of LNG to Japan,” Hagiuda stated. They shared a primary coverage on sustaining the stakes, and he hoped the buying and selling homes would begin the process for changing to the brand new entity if they may meet Russia’s situations.

Mitsui & Co has a 12.5% stake in Sakhalin-2. Mitsubishi Corp holds 10%.

Reporting by Yuka Obayashi; Enhancing by Tom Hogue and Bradley Perrett

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