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State Share in the Form of Natural Gas
11 Jul 2009 04:51 PM
Excerpt from Russian Petroleum Investor by Inna Gaiduk and Elena Kirillova
| Before his visit to Japan, Russian Prime Minister Vladimir Putin visited the Primorye territory. At a meeting with the governor Sergey Darkin, he announced the signing of a government decree providing that the share received by Russia from the production sharing agreements (PSAs) for the Sakhalin 1 and Sakhalin 2 projects should be received in the form of natural gas. That gas, he said, would supply Primorye, particularly Vladivostok. To make this arrangement effective, local and regional authorities must make the necessary decisions regarding low-pressure gas networks to ensure their smooth operation. |
Earlier, deputy prime minister Igor Sechin reported that at its April 11 meeting the government considered the realization of gas projects in the Far East. In particular, discussion involved the idea of granting to Gazprom the right to be the authorized organization for royalties and shares in the Sakhalin-1 and Sakhalin-2 projects.
Participants in Sakhalin-1 are Exxon Neftegaz (30 percent), ONGC (India, 20 percent), Rosneft (20 percent) and Sodeco (Japan, 30 percent). The project includes three offshore fields: Chayvo, Odoptu and Arkutun Dagi. Potential recoverable reserves of these deposits are 307 million tons of oil and 485 billion cubic meters of gas.
The Sakhalin-2 project assumes development of the Piltun-Astokhskoye and Lunskoye deposits, with total reserves approaching 505.3 million tons of oil (120 million tons extractable), 75.3 million tons of condensate (50.1 million tons extractable) and 634.3 billion cubic meters of gas. The total cost of the project is nearly $20 billion. Created in 1994 to realize the project, Sakhalin Energy includes among its shareholders Gazprom (50 percent plus 1 share), Royal Dutch/Shell (Netherlands/UK, 27.5 percent minus one share), and Japanese companies Mitsui (12.5 percent) and Mitsubishi (10 percent). Read Related Articles
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