Russia to Create New Operator for Sakhalin-1 Project

Economy

Tokyo, Oct. 8 (Jiji Press)--Russian President Vladimir Putin signed a decree Friday to create a new operator for the Sakhalin-1 oil and natural gas project in the Russian Far East.

The move is expected to affect Sakhalin Oil and Gas Development Co., or SODECO, a Japanese government-backed consortium that owns a stake of about 30 pct in the project.

Putin took a similar move in July to seize control of the Sakhalin-2 oil and gas project.

Foreign participants in the Sakhalin-1 project will have one month after the new operator is created to submit notices to the Russian government on their consent to take ownership of the new entity, the decree said.

Participants in SODECO include trading houses Itochu Corp. <8001> and Marubeni Corp. <8002>, and Japan Petroleum Exploration Co. <1662>, or JAPEX, in addition to the Japanese government.

[Copyright The Jiji Press, Ltd.]

Jiji Press