Russia’s Sakhalin oil project resumes with exports to South Korea: report

The Sakhalin-1 oil and gas project in the Russian Far East appeared to have resumed operations after a five-month hiatus due to Exxon’s exit, as the first tanker left the terminal on October 30.

bloomberg report A vessel carrying Russian Sokol crude oil set sail for South Korea from the Decastoli Terminal on October 30. However, after the cargo arrived at Yeosu Port on November 3, the cargo was either handed over or transferred to another vessel. It is unknown if it will be transferred.

Production at the Sakhalin-1 project was announced in April by U.S. energy company Exxon Mobil Corp. Declared force majeure (a clause in the contract releasing both parties from liability for extraordinary events) because of the international sanctions imposed on Russia for its aggression against Ukraine.

Russia’s state oil company Rosneft said on August 4 that the last tanker left the De Kastri terminal on May 6, and oil production at the Sakhalin-1 project had nearly stopped since May 15.

President Putin of Russia signed the decree On October 7, the government will be able to decide whether foreign shareholders can retain their stake in the project.

Exxon then fully closed on October 17. left Russia Because the government “unilaterally terminated” its interest in the project and transferred it to a Russian operator.

The Sakhalin-1 project produces Sokol crude in Russia’s Far East and exports approximately 273,000 barrels per day of crude oil, mainly to South Korea and other destinations such as Japan, Australia, Thailand and the United States.

Japan retains interest in Sakhalin-1

The Japanese government on Tuesday said it would keep its stake in the Sakhalin-1 project and called on members of the Japanese consortium to join the new Russian organization, citing its key role in Japan’s energy security.

A Japanese consortium owns 30% of the Sakhalin-1 project. Industry Minister Yasutoshi Nishimura said Japan relies heavily on crude oil from the Middle East.

“Sakhalin-1 is very important for Japan’s energy security because it is a valuable source of supply outside the Middle East,” Nishimura told reporters.

The move comes as Nishimura repeatedly says the project is important for the resource-poor country to diversify its sources, and Japanese companies remain on the Sakhalin-2 gas and oil project. It had been.

Japanese companies Mitsui & Co. and Mitsubishi Corporation hold 12.5% ​​and 10.5% stakes respectively in the Sakhalin-2 project, while Russian state-owned Gazprom PJSC owns 50%. Shell, which holds a 27.5% stake, ended the project in response to the war in Ukraine.

Russia is Japan’s fifth largest supplier of liquefied natural gas (LNG), accounting for about 8% of its consumption. The Sakhalin-2 oil and gas project was he one of Japan’s major sources of LNG with a production capacity of 9.6 million tons per annum.

Reuters contributed to this report.

Aldogra Fredry


Aldgra Fredly is a Malaysia-based freelance writer covering Asia Pacific news for The Epoch Times.