(MENAFN) On Monday, the Russian government permitted India's Oil and Natural Gas Corp (ONGC) and Japan's Sakhalin Oil and Gas Development Co (SODECO) to retain their holdings in the Sakhalin-1 oil and gas project's new domestic operator.
SODECO's shareholding will remain at 30%, while ONGC's stake will remain at 20%, as it was under the previous shareholder structure.
According to S&P, Japan wants to maintain its investment in Russia in order to diversify the country's energy supply, as it relies on the Middle East for almost 95% of its oil imports. Japan's Chief Cabinet Secretary, Hirokazu Matsuno, praised the move, calling it "very significant from the perspective of our country's mid-to-long-term steady energy supply."
Russia's decision follows the departure of ExxonMobil, the previous operator and owner of a 30% share in Sakhalin-1. Exxon Neftegaz, the project's operator, was disbanded in October, and its assets and equipment were transferred to a new firm run by Rosneft subsidiary Sakhalinmorneftegaz-Shelf.
“Sakhalin-1 is extremely important for Japan's energy security as it is a valuable source outside of the Middle East,” trade minister, Yasutoshi Nishimura informed the outlet in the current month.
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