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Japanese Interests in Sakhalin-1 Still Under Discussion

OIL

Japan is still to consult stakeholders on their plans for participation in Russia’s Sakhalin- 1 oil and gas project.

  • Russia last week issued a decree allowing it to seize Exxon Mobil's 30% stake and gave a Russian state-run company the authority to decide whether foreign shareholders can retain their participation in the project.
  • Japanese industry minister Yasutoshi Nishimura said earlier in the week that the project was key for diversifying the countries energy supply because it is mostly dependent on the Middle East.
  • Any immediate impact on Japan's oil supply will be limited as the country stopped importing crude from the project in May Nishimura added.
  • Japan has also requested Petronas to minimize the impact of LNG supply outage due to damage at the Malaysia LNG Dua liquefaction terminal.

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