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Russia takes control of major oil and gas projects owned by some foreign companies

RussianPresidentVladimirputinis a complete of major oil and gas projects partially owned by Shell and two Japanese companies. Transferred control to the newly created Russians A solid and bold move in the swirling tensions with the West over Moscow's military action in Ukraine.

Late Thursday Putin's decree takes over ownership of Sakhalin Energy Investment Company, which is almost 50% controlled by British energy giant Shell and Japan-based Mitsui and Mitsubishi. Ordered the establishment of a company. ..

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Putin's order was "a threat to Russia's national interests and its economic security" as the reason for the move in Sakhalin 2, one of the world's largest export-oriented oil and gas projects.

The presidential order gives foreign companies one month to decide whether to hold the same shares of the new company.

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Russia's state-owned natural gas giant Gazprom had control of Sakhalin 2. This is the first offshore gas project in Japan, accounting for about four. Percentage of the global market for liquefied natural gas (LNG). The main customers of the project's oil and LNG exports are Japan, South Korea and China.

Kremlin spokesman Dmitry Peskov said on Friday that there was no reason to expect supply to stop following Putin's orders.

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Shell owns 27.5% stake in the project. After the start of Russian military action in Ukraine, Shell announced a decision to withdraw all Russian investment. The move cost at least $ 5 billion. The company also holds a 50% stake in two other joint ventures with Gazprom to develop oil fields.

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Shell said Friday that he was studying Putin's orders that questioned investing in a joint venture. rice field.

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"As a shareholder, Shell is always in the best interests of Sakhalin 2 and all the laws that apply. We have acted according to our requirements, "the company said in a statement. "We are aware of the law and appreciate its impact."

Seiji Kihara, Deputy Chief Secretary of the Japanese Cabinet, said the government was aware of Putin's orders. He said he was considering the impact. Japan-based Mitsui owns 12.5% ​​of the project and Mitsubishi owns 10%.

Kihara emphasized that this project should not be compromised because it is "related to Japan's energy security" and "everything that harms our resource rights is accepted. No, "he added.

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"We are scrutinizing Russia's intentions and background, he told reporters at a press conference twice a day on Friday." We are investigating the details. Future steps are unpredictable at this time.

In a telephone conference with reporters asked if Putin's move with Saharin 2 could foretell similar actions against other joint ventures involving foreign shareholders, Peskoff said. There can be no general rules. " "Each case will be considered separately," he added.

Sakhalin-2 includes three offshore platforms, an onshore processing facility, a 300km offshore pipeline, a 1,600km onshore pipeline, an oil export terminal and an LNG plant.

© 2022 TheCanadian Press