Japan to keep stake in Russian energy project in Sakhalin

Nov 4, 2022, 4:42 AM | Updated: 4:56 am
FILE - The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project i...

FILE - The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia, on Friday, Oct. 29, 2021. Japan’s industry minister said Friday, Nov. 4, 2022, that a Japanese consortium has decided to retain its stake in the new Russian operator of the Sakhalin-1 oil and gas project and is set to notify Moscow by the deadline, a move to secure stable energy supply for the resource-scarce country. (AP Photo, File)

(AP Photo, File)

TOKYO (AP) — A Japanese consortium has decided to retain its stake in the new Russian operator of the Sakhalin-1 oil and gas project and is set to notify Moscow, moving to secure stable energy supplies for resource-scarce Japan.

“It’s an extremely important project,” Economy and Industry Minister Yasutoshi Nishimura said Friday in welcoming the unanimous decision by the shareholders in Sakhalin Oil and Gas Development Co., or SODECO, a consortium of Japanese companies holding a 30% stake in Sakhalin-1 in Russia’s Far East.

Nishimura said SODECO was expected to notify the Russian operator of its decision by Nov. 11, meeting a deadline set by Russia. The government will do its utmost to ensure Japan’s energy security by working closely with the private sector, he said.

The decision by SODECO shareholders Friday came days after Nishimura met with consortium executives asking them to keep their stake in the Russian project.

Japan’s government owns a 50% stake in SODECO. The remainder is held by private companies including major trading giants Itochu Corp. and Marubeni Corp. and energy companies Inpex Corp. and Japan Petroleum Exploration Co.

Many major Western energy companies have withdrawn from projects in Russia due to the war in Ukraine. Japanese officials maintain that oil and gas from Sakhalin is vital for the country’s energy security.

Russian President Vladimir Putin in October unilaterally announced a plan to establish a new operator for the project previously led by Exxon-Mobil, which left the project after Moscow terminated the company’s interests in the project.

Japanese companies Mitsubishi Corp. and Mitsui & Co. have chosen to keep their stakes in Sakhalin-2, another oil and gas project under a new Russian operator.

Japan imported about 4% of its oil from Russia last year before suspending its purchases after sanctions were imposed on Moscow for its invasion of Ukraine. Japan has since increased crude imports from Middle East.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


              FILE - Japan's Economy and Fiscal Policy Minister Yasutoshi Nishimura speaks during a press conference at the prime minister's official residence in Tokyo, Sept. 11, 2019. Nishimura said Friday, Nov. 4, 2022, that a Japanese consortium has decided to retain its stake in the new Russian operator of the Sakhalin-1 oil and gas project and is set to notify Moscow by the deadline, a move to secure stable energy supply for the resource-scarce country. (AP Photo/Eugene Hoshiko, File)
            
              FILE - The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia, on Friday, Oct. 29, 2021. Japan’s industry minister said Friday, Nov. 4, 2022, that a Japanese consortium has decided to retain its stake in the new Russian operator of the Sakhalin-1 oil and gas project and is set to notify Moscow by the deadline, a move to secure stable energy supply for the resource-scarce country. (AP Photo, File)

AP

FILE - Queen Margrethe attends the Danish Parliament's celebration of her 50th Regent's Anniversary...
Associated Press

Danish queen to undergo ‘major back surgery’

COPENHAGEN, Denmark (AP) — Denmark’s Queen Margrethe II, whose half-century reign makes her Europe’s longest-serving monarch, will undergo “major back surgery” later this month, the royal palace said Wednesday. The 82-year-monarch will be hospitalized afterward and undergo “a longer rehabilitation process,” the royal household said in a statement. “During a long period, Her Majesty has […]
10 hours ago
Associated Press

Blaze at US drone plant in Latvia; arson not suspected

HELSINKI (AP) — Firefighters worked for a second day Wednesday to fully extinguish a blaze at a U.S. company’s drone plant in Latvia, as police said no indications of sabotage have been found so far. Latvia’s State Fire and Rescue Service was alerted Tuesday afternoon that a fire had broken out at Edge Autonomy’s drone […]
10 hours ago
FILE - People walk past a Microsoft office in New York on Nov. 10, 2016.  (AP Photo/Swayne B. Hall,...
Associated Press

Microsoft’s Activision deal hurts gamers, UK watchdog says

LONDON (AP) — Microsoft’s stalled $68.7 billion deal to buy video game company Activision Blizzard has hit a fresh hurdle in the United Kingdom, where the antitrust watchdog said Wednesday that it will stifle competition and hurt gamers. Britain’s Competition and Markets Authority said its in-depth investigation found that the deal could strengthen Microsoft’s position […]
10 hours ago
FILE - The Container ship Cam Cgm Arctic (MT) is moored at Maersk APM Terminals Pacific, Pier 400, ...
Associated Press

Shipper Maersk reports most profitable year, warns of drop

COPENHAGEN, Denmark (AP) — The world’s biggest shipper, Denmark’s A.P. Moeller-Maersk, said Wednesday that 2022 was its most profitable year in “the history of the company” but warned that a plunge in container volumes and freight rates would lead to a drop in earnings this year. Full-year revenue increased by 32%, to $81.5 billion from […]
10 hours ago
Lindsay McDonald holds up a photo she took of an orb over central Montana that's believed to be a s...
Associated Press

US, states weigh farmland restrictions after Chinese balloon

HARLOWTON, Mont. (AP) — Near the banks of Montana’s Musselshell River, cattle rancher Michael Miller saw a large, white orb above the town of Harlowton last week, a day before U.S. officials revealed they were tracking a suspected Chinese spy balloon over the state. The balloon caused a stir in the 900-person town surrounded by […]
10 hours ago
Associated Press

Russia seeks lengthy prison term for ex-governor

MOSCOW (AP) — Russian authorities on Wednesday requested a lengthy prison term for a former regional governor who is standing trial on murder charges and whose arrest two years ago prompted weeks-long mass protests. The prosecutor has asked a court in the Moscow region to sentence Sergei Furgal, former governor of Russia’s far eastern Khabarovsk […]
10 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Japan to keep stake in Russian energy project in Sakhalin