Japan to Take Part in New Sakhalin-1 Operator

Politics Economy

Tokyo, Nov. 1 (Jiji Press)--Japan plans to take part in the new operator of the Sakhalin-1 oil and gas project in the Russian Far East, industry minister Yasutoshi Nishimura said Tuesday.

Sakhalin-1 is a "crucially important project in terms of energy security," Nishimura stressed at a press conference.

The Japanese government believes that it is necessary to maintain the country's interests in the project at a time when the country is facing a challenge of reducing its oil dependence on the Middle East, which currently stands at around 90 pct.

In the project, Sakhalin Oil and Gas Development Co., or SODECO, a Japanese government-backed consortium that also includes trading houses Itochu Corp. <8001> and Marubeni Corp. <8002>, has been holding a stake of about 30 pct.

According to Nishimura, the government called on SODECO's president on Monday to positively consider participating in the new Sakhalin-1 operator.

[Copyright The Jiji Press, Ltd.]

Jiji Press