Shell said on Friday it was assessing the implications of a Russian decree that would allow Moscow to take charge of the giant Sakhalin-2 natural gas project in which the British company has a 27 . (Reuters) -- Energy giant Shell is in talks with some Chinese companies to sell its stake in a major Russian gas project amid sanctions imposed on . Mr. Putin's move. Sakhalin Energy "will remain the operator of the Sakhalin-2 project," Shell said. Japan, South Korea and China are the main customers for oil and LNG exports, according to Shell. Russia has seized control of the internationally-run Sakhalin-2 LNG and oil project under a Kremlin decree announced on June 30, potentially putting other Western oil & gas investments at risk of similar action. | Russia & Caucasus. Shell's most important investment in Russia is its stake in the Sakhalin-II project in the waters near Sakhalin Island off Russia's east coast. Questions 1 & 2.The main factor that makes the Sakhalin project attractive for Royal Dutch Shell (RDS) is macroeconomic: the quantity of the estimated reserve of gas and oil around Sakhalin (exhibit 4) combined to Russia's dominant player position on both markets are likely to provide RDS as a supplier with a strong bargaining power once the reserves can be exploited. Japan-based Mitsui owns 12.5% of the project . Japan, South Korea and China are the main customers for oil and LNG exports, according to Shell. Sources have said Shell believed there was a risk Russia would nationalise foreign-held assets, while Putin has repeatedly said Moscow would retaliate against the United States and its allies for freezing Russian assets and other sanctions. The Sakhalin-II project is managed by the Sakhalin Energy Investment Company Ltd. (Sakhalin Energy). TOKYO (Reuters) -Shares in Japan's Mitsui & Co and Mitsubishi Corp fell about 5% on Friday after Russia moved to create a new firm to take charge of the Sakhalin-2 oil and gas project in the country's far east. Sakhalin-2 is "one of the world's largest integrated, export-oriented, oil and gas projects," according to minority owner Shell, and it was Russia's first offshore gas project. Gazprom holds the controlling stake (50% plus 1 share) in Sakhalin Energy, Shell has 27.5%, Mitsui and Mitsubishi own 12.5% and 10% respectively. In 2016, Sakhalin-2 met 6% of the LNG market in the Asia-Pacific region. Shell exits Russia's Sakhalin-2: Five things to know. Shell in February said it would exit all its Russian operations, including the Sakhalin-2 LNG plant, after sanctions tightened on Moscow. . Its subsidiary, Exxon Neftegas Limited (ENL), has a 30% stake in Sakhalin-1 a vast oil and natural gas project located off Sakhalin Island in the Russian Far East. In March, Shell announced plans to exit its joint ventures with Russian state-run gas giant Gazprom and related entities. The Sakhalin 2 project, located off Russia's northeastern coast is huge, producing around 11.5 million tonnes of LNG per year, which is exported to major markets including China and Japan. Japan-backed Sakhalin-2 LNG project rocked by Shell exit. Sakhalin-2 is one of the world's largest integrated, export-oriented, oil and gas projects and Russia's first offshore gas project. Russia was the world's third-largest oil producer in 2020, producing 10.5 million barrels of oil a day, or 11% of the world's total, according to the U.S. Energy Information Agency. Shell's most important investment in Russia is its stake in the Sakhalin-II project in the waters near Sakhalin Island off Russia's east coast. It said on Friday it was . Later, the company said it would have to write off as much as $5 billion in assets due to the exit. Shell, Mitsubishi, Mitsui hold stakes in Sakhalin-2 LNG site Decree will transfer rights in plant to a new Russian company Sakhalin-2 is an integrated oil and gas project. Sakhalin-2, in which Shell has a 27.5% minus one share stake, is one of the world's largest LNG projects . Hagiuda's comments follow a report in the Telegraph on Thursday that Shell is in talks with some Chinese companies to sell its stake in the Sakhalin-2 liquefied natural gas project in Russia amid . Dozens of Shell employees on temporary assignment at the Sakhalin-2 liquefied natural gas export project in Russia were removed over the weekend to be relocated back to other offices, according to . Shell, a major British oil company, has announced that it will withdraw from the oil and gas development business "Sakhalin 2" in Sakhalin, Russia. As the economic repercussions of the Ukraine war extend, the decision may push Shell and Japan's Mitsui and . Jul 2, 2022. The consortium includes Indian government-run ONGC Videsh and GAIL, reported Reuters, citing three undisclosed sources. Worth approximately $10 billion, the second phase of Sakhalin II would be the single largest investment decision in the history of Royal Dutch/Shell, as well as the single largest . Sakhalin-2, in which Shell has a 27.5% minus one share stake, is one of the world's largest LNG projects . There is now a strong moral imperative on British companies to isolate Russia. The Financial Times, familiar with the situation, wrote about this on April 24. Sakhalin-2 is "one of the world's largest integrated, export-oriented, oil and gas projects," according to minority owner Shell, and it was Russia's first offshore gas project. Shell holds a 27.5% stake in the facility, located in the far east of Russia.
Russian President Vladimir Putin has signed a decree that could be interpreted as a backdoor move to nationalize the Sakhalin-2 offshore upstream oil and gas project and related LNG facilities as Moscow seeks to block Shell, and possibly Japan's Mitsui and Mitsubishi from selling their stakes to other international players. Shortly after Moscow's invasion of Ukraine, Shell PLC said it would sell its 27.5% stake in the project as part of plans to leave Russia altogether. Jefferies puts the value at 20p in a 21.68 share price. The sale of the 27.5% stake in the LNG plant, which is located on Russia's eastern flank, comes as the oil firm intends to exit its operations in Russia in the wake of . It has operated the project . As of 2011, Russian state monopoly Gazprom holds 50% plus 1 share, RoyalDutch Shell 27.5%, Mitsui 12.5% and Mitsubishi 10%. TOKYO/LONDON, (Reuters) - President Vladimir Putin has raised the stakes in an economic war with the West and its allies with a decree that seizes full control of the Sakhalin-2 gas and oil project in Russia's far east, a move that could force out Shell and Japanese investors. (Bloomberg) -- President Vladimir Putin signed a decree to transfer rights to the Sakhalin-2 natural gas project to a new Russian company, a move that could force foreign owners including Shell . Sakhalin 2 is a large-scale project in which a major Japanese trading company also invests, and it seems that the response of the Japanese side will be questioned. Russian President Vladimir Putin has raised the stakes in an economic war with the West and its allies with a decree that seizes full control of the Sakhalin-2 gas and oil project in Russia's far east, a move that could force out Shell and Japanese investors. BEIJING/TOKYO -- Energy giant Shell's reported talks with Chinese companies over its stake in the Sakhalin-2 project raise energy security concerns for Japan as possible Moscow-Beijing dominance . President Vladimir Putin has signed a decree to transfer rights to the Sakhalin-2 natural gas project to a new Russian company, a move that could force foreign owners including . The consortium includes Indian government-run ONGC Videsh and GAIL, reported Reuters, citing three undisclosed sources. Most of the liquefied natural gas (LNG) produced . . Shell has studied the decree of Russian President Vladimir Putin on changing the operator of the Sakhalin-2 LNG project, and is assessing its requirements, a company representative told TASS. [citation needed]The company's principal activities are the production and export of crude oil (since 1999) and liquefied natural gas (from 2009). TOKYO/LONDON, July 1 (Reuters) - President Vladimir Putin has raised the stakes in an economic war with the West and its allies with a decree that seizes full control of the Sakhalin-2 gas and oil project in Russia's far east, a move that could force out Shell and Japanese investors. Shell is reportedly in discussions with an Indian consortium to divest its stake of 27.5% in the Sakhalin-II liquefied natural gas (LNG) facility in Russia. Russia is moving to further tighten its grip on the nation's oil and natural gas supplies, issuing a decree for the country to take over the Sakhalin-2 liquefied natural gas (LNG) export project . Shell, which has already written off the value of its Russian assets, made clear months ago it intended to quit Sakhalin-2 and has been in talks with potential buyers. Most brokerage analysts will not have much in their financial models for the project. Russian President Vladimir Putin signed a decree on Thursday to take charge of the Sakhalin-2 project.. Putin's latest move could. The threat of a $50 billion lawsuit meant Shell stood to lose everything. On Friday, Shell said it was "assessing" the implications of Russia's move but declined to comment further. Vladimir Putin, the president of Russia, issued an executive order on Thursday to take control of the Sakhalin-2 project. Shell, Europe's largest oil company, said on Monday that it would exit its joint ventures with Gazprom, the Russian natural gas giant. The sale is part of Shell's efforts to withdraw all its businesses . Sakhalin Energy, which operates the Sakhalin-2 project is owned 50% by Gazprom and 27.5% by Shell (LON:SHEL), while Japanese resource traders Mitsui and Mitsubishi own 12.5% and 10% respectively. A Shell spokesperson said it was monitoring . The sale is part of Shell's efforts to withdraw all its businesses . Shell is well aware of the risk. Sakhalin-2: one of the world's largest integrated oil and gas projects Shell has announced that it intends to exit equity partnerships held with Gazprom entities Sakhalin-2 is one of the most challenging engineering feats ever achieved. The new firm will take over all rights and obligations of Sakhalin Energy Investment Co, in which the two Japanese trading companies and Shell Plc hold just under a 50% stake, according . First published 24 April 2022, on NSN FM The exit from the Russian Sakhalin-2 project and, in general, due to the refusal of Russian energy resources turned into a "nightmare" for the British-Dutch oil and gas company Shell. It operates in some of the world's harshest conditions in Russia's far east, an area prone to earthquakes. On April 21, it was reported that Shell is in joint discussions with China's state-run energy companies to offload its 27.5% stake in the Sakhalin-2 liquefied natural gas (LNG) venture. Its shareholders include Russian gas giant Gazprom (50% plus one share) and Shell (27.5% minus one share). Sakhalin-2, in Russia's far east, is one of the world's largest oil and gas projects that supplies about 4% of the global liquefied natural gas market. Sakhalin-2 supplies about 4% of the world's current liquefied natural gas (LNG) market. Sakhalin-2 is one of the world's largest integrated, export-oriented, oil and gas projects and Russia's first offshore gas project. Shell have made the right call to divest from Russia - including Sakhalin II.