Following the signing of a decree by Russian President Vladimir Putin transferring the ownership of the Sakhalin-2 operator company to the state, the securities of the Japanese companies Mitsui and Mitsubishi, which hold stakes in the project, collapsed.
As a result, compared to June 30, Mitsui shares decreased by 6.14 percent to 2,810 yen ($20.8) per share, while Mitsubishi shares decreased by 5.6 percent to 3,811 yen ($28.2) per share.
The project is owned by Mitsui to the tune of 12.5%, Mitsubishi to the tune of 10%, and Shell to the tune of 27.5% less one share. Gazprom of Russia owns 50% plus one of the shares.
On July 1, Putin issued an order to replace Sakhalin Energy as the project’s operator and hand over the company’s assets to the government.
The state will also receive all of the operator’s rights and duties.
Both Gazprom Sakhalin Holding and the new operator company will own shares in the authorised capital of the new Sakhalin-2 operator that will be established in place of Sakhalin Energy.
The Russian government must be informed one month in advance if foreign participants intend to accept their proportionate share in the new operator.
The Japanese government is hopeful that its rights and interests in the project won’t be harmed by Moscow’s decision.
On the Russian island of Sakhalin, there is a development for oil and gas called Sakhalin-2. Offshore Sakhalin Island in the Okhotsk Sea, it includes the development of the Piltun-Astokhskoye oil field and the Lunskoye natural gas field, as well as related infrastructure on land.