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Requirements Set for Sakhalin-2 Partners

OIL

The Russian government has set criteria for companies looking for a stake in Sakhalin-2.

  • Potential buyers must have prior experience in operating an LNG plant with a production capacity of more than 4 million tonnes per year and cumulative production of at least 40 million tonnes.
  • Buyers must also have valid charter agreements for gas carriers with a total cargo capacity of more than 4 million cubic meters, which are valid for at least 10 years. Applicants must have LNG supply contracts with a validity period of more than five years.
  • The controlling stake (50% plus 1 share) in Sakhalin Energy belongs to Gazprom, Shell has 27.5% of the shares, Mitsui and Mitsubishi own 12.5% and 10% respectively.
  • In late August, Mitsui and Mitsubishi officially informed the Russian authorities of their agreement to retain their stake. Shell is currently trying to offload its stake.

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