Trader Mitsui Planning to Join New Sakhalin-2 Operator

Economy

Tokyo, Aug. 20 (Jiji Press)--Japanese trading house Mitsui & Co. <8031> plans to join a new Russian operator of the Sakhalin-2 oil and natural gas development project in the Russian Far East, informed sources said Saturday.

Mitsui is expected to finalize its decision on the move later this month at the earliest and convey it to the Russian government, according to the sources. The company hopes to retain its interest in the project and help ensure a stable supply of liquefied natural gas to Japan.

In the Sakhalin-2 project, Mitsui has a 12.5 pct stake, while another Japanese trading house, Mitsubishi Corp. <8058>, owns 10 pct. Mitsubishi is also considering its possible participation in the new operator.

The Japanese government has been asking the two trading companies to retain their stakes.

The Russian government established the new company to take over the project on Aug. 5. The Japanese firms are given until Sept. 4 to notify Moscow if they wish to acquire shares in the new company.

[Copyright The Jiji Press, Ltd.]

Jiji Press