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Japan Commits to Sakhalin-1 Project

OIL

A Japanese consortium, Sakhalin Oil and Gas Development co (SODECO), has agreed to participate with the new Russian operator of the Sakhalin-1 oil and gas project.

  • The Japanese government has a 50% stake in SODECO and supports the decision to join the new Russian entity.
  • SODECO, which held a 30% stake in the formerly Exxon Mobil Corp-led project, plans to submit an application to retain the stake in the new Russian operating company by Nov. 11.
  • Japan has cited energy security concerns for its decision to maintain its participation in Russian ventures.

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