Japan to Maintain Interest in Sakhalin-1 Project

Tokyo, Nov. 5 (Jiji Press)--A Japanese public-private company has decided to take part in a new Russian firm that has taken over the Sakhalin-1 oil and gas development project in Russia's Far East region.

At Friday's general meeting of shareholders of the Japanese company, Sakhalin Oil & Gas Development Co. (SODECO), which holds a 30 pct stake in the project, all shareholders, including the Japanese government, major traders Itochu Corp. <8001> and Marubeni Corp. <8002>, and Japan Petroleum Exploration Co. <1662>, voted to support the company's participation in the new Russian firm.

Japanese industry minister Yasutoshi Nishimura told reporters later on Friday that an application for Russian consent to SODECO's participation will be submitted by Nov. 11.

SODECO will be able to maintain its stake in the Sakhalin-1 project if the Russian government gives its consent.

The new Sakhalin-1 operator was set up on Oct. 14, with foreign firms involved in the project asked to notify the Russian side within a month whether they want to keep their investments in the new company.

[Copyright The Jiji Press, Ltd.]