Russia's Energy Ministry says no plans to replace Sakhalin-1 operator

The Russian Energy Ministry has no plans to replace the operator of the Sakhalin-I oil and gas project, which Russian and foreign companies are managing under production-sharing agreements, but will study the Audit Chamber's findings on the operator's efficiency, Energy Minister Sergei Shmatko said on Wednesday.

 

"The Energy Ministry has never formulated the issue in this way and is not going to do so. But we'll certainly study the Audit Chamber materials that will be submitted," Shmatko said.
The current Sakhalin-1 project operator is U.S. oil firm Exxon Neftegas. Russia's Natural Resources Ministry said in late September that disagreements between Russian ministries and the company persisted, especially in relation to a new cost estimate for the project.