The Cabinet of Ministers also appointed a subsidiary of Rosneft, Sakhalinmorneftegaz-Shelf, as the management company of the new operator. The company will manage the operations and production of all work under a production sharing agreement (PSA), including hiring personnel, concluding contracts for the provision of services and performance of work, follows from the resolution. The authorized capital of the new LLC is 10 thousand rubles. It will receive all the property of the consortium under a production sharing agreement for Sakhalin-1.
Sakhalin-1 is an international joint venture that, up until April, had been managed by ExxonMobil subsidiary Exxon Neftegaz. At that time, ExxonMobil pulled out of the project, shutting production down.
Sakhalin-1 was also the site of a planned LNG terminal, to add export capacity to the existing Sakhalin-2 and Yamal terminals.
This is where Russia’s geopolitical isolation hurts Russia the most—losing access to the technical resources it has used to help design, build, and run its oil and natural gas production and distribution systems.
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Russia Is Attempting To Restart Sakhalin-1
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Russia has taken the first administrative steps to getting the Sakhalin-1 oil and natural gas production facility in the Far East back online, by giving control to a Rosneft subsidiary.
Sakhalin-1 is an international joint venture that, up until April, had been managed by ExxonMobil subsidiary Exxon Neftegaz. At that time, ExxonMobil pulled out of the project, shutting production down.
Sakhalin-1 was also the site of a planned LNG terminal, to add export capacity to the existing Sakhalin-2 and Yamal terminals.
This is where Russia’s geopolitical isolation hurts Russia the most—losing access to the technical resources it has used to help design, build, and run its oil and natural gas production and distribution systems.