Mitsui and Mitsubishi write off $1.7 billion of investment in Sakhalin-2
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Japanese companies Mitsui and Mitsubishi have written off 136.6 billion yen ($1.7 billion) of their own investments in an oil and gas project.Sakhalin-2“, informs Bloomberg.
So, Mitsui wrote off about 136.6 billion yens ($1.1 billion), the volume of write-offs of Mitsubishi amounted to 81 billion yens ($610 million). Both companies own 22.5% of the shares in the project.
LNG projectSakhalin-2» is sold on the shelf of the Sakhalin Peninsula under a production sharing agreement. The Piltun-Astokhskoye and Lunskoye fields are being developed there. Gazprom owns 50% plus one share in the project, Mitsui and Mitsubishi own 12.5% and 10%, respectively, and Shell owns the rest.
On June 30, Russian President Vladimir Putin signed a decree on the liquidation of the operator of the Sakhalin-2 project, Sakhalin Energy, and the transfer of his rights and obligations to a Russian legal entity. The controlling stake in the operator (50% of the shares plus one) belongs to Gazprom, the Japanese Mitsui and Mitsubishi – 12.5% and 10% of the shares, respectively, the rest is owned by the Anglo-Dutch Shell.
In early July, the Kyodo agency reported that after the signing of Putin’s decree, Mitsui and Mitsubishi may be forced to leave the Sakhalin-2 project. Foreign investors, according to the agency, must apply within a month to keep their existing stakes in the new company. Japan buys 9% of imported gas from Russia and almost all of this volume is supplied through the Sakhalin-2 project, Kyodo noted.
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