Pavel Zavalny, head of the Energy Committee of Russia’s lower house, said today that the Sakhalin-1 oil and gas pipeline in the Russian Far East will come under Moscow’s jurisdiction, as it has already done with Sakhalin-2.
Russian President Vladimir Putin last week signed a decree giving Moscow full control of the project to build the Sakhalin-2 pipeline, a move that could force Shell and Japanese companies to pull out of the project.
Four companies—Rosneft, ExxonMobil, Japan’s SODECO and India’s ONGC Videsh—are partners in Sakhalin-1. ExxonMobil decided to pull out of the project in March after Russia invaded Ukraine.
“We were forced amid sanctions to take the decision to transfer Sakhalin-2 from the (production sharing) regime to Russia’s jurisdiction (…) Obviously the same will happen with Sakhalin-1,” Zavalny said.
“When sanctions are imposed, when companies basically cannot actively participate in a project, it creates various risks for us and we are forced to make these kinds of decisions,” he added.
SOURCE: APE-ME
Source: Capital
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