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2023 May 10   16:00

Four Svitzer tugboats involved in Sakhalin-2 project arrested on request of Sakhalin Energy

Image source: Sakhalin Energy

Harbour Master of port Korsakov is not allowed to undertake any registration actions with the vessels

The Arbitration Court of the Sakhalin Region satisfied the request of Sakhalin Energy LLC for interim measures and imposed an arrest on four tugboats of Svitzer (Netherlands) being used under the Sakhalin-2 project, according to the court ruling dated 24 April 2023.

The arrest with the right to conduct bunkering operations and transportation of passengers in the port of Prigorodnoye, but within the territorial waters of Russia has been imposed on the following ships: Svitzer Aniva, Svitzer Sakhalin, Svitzer Busse Svitzer Korsakov (owner — Svitzer Sakhalin B.V., the Netherlands, operator — Svitzer Sakhalin Terminal Towage LLC).

The arrested tugs have been handed over to Sip Management with the ability to use them.

According to the court ruling, in September 2012, Sakhalin Energy Investment Company Ltd. (SEIC, formeroperator of Sakhalin-2 project) and Svitzer Sakhalin Terminal Towage LLC signed a charter agreement for tugboats owned by Svitzer Sakhalin B.V. (the Netherlands) which were given to the Svitser Sakhalin under the bareboat charter agreement. In November 2022, a trilateral contract novation was singed according to which all rights and obligations of SEIC were transferred to Sakhalin Energy (the current operator of Sakhalin-2). However, on 17 April 2023, Svitzer Sakhalin notified of the immediate suspension of the contract due to force majeure, referring to a letter received from Svitzer about the planned termination of bareboat charters, the change of ships’ flags and their relocation from the territorial waters of the Russian Federation.

According to the court, the requested interim measures are aimed exclusively at ensuring the claimant's ability to continue using tugs under the existing contract and to continue implementation of the Sakhalin-2 project.

The court ruling is subject to immediate execution, but can be appealed within one month.

New operator of Sakhalin 2 project, Sakhalin Energy LLC, commenced its operation on 19 August 2022. The new structure will take over the rights and obligations of the previous operator as well as its personnel. Previously, Sakhalin-2 was operated by Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) registered on the Bermuda Islands Gazprom holding 50%, Shell - 27.5% Mitsui – 12.5%, Mitsubishi - 10%.

Sakhalin 2, Russia’s first LNG plant, produces about 11.5 million tonnes per year. The plant is fed by gas from the Piltun-Astokhskoye and Lungskoye fields of the Sakhalin shelf.

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