Sakhalin Energy, the operator of the Sakhalin-2 oil and gas project, on Wednesday announced the completion of the acquisition of 50% plus one share in the project by Russian gas monopoly Gazprom, Prime-Tass reports
Gazprom agreed in December to buy the stake in the Sakhalin-2 project from Anglo-Dutch company Royal Dutch/Shell and Japan’s Mitsui and Mitsubishi for U.S. $7.45 billion following nearly a year of sustained attacks on the project by Russian regulators over cost overruns and purported environmental violations.
After the completion of the deal, Royal Dutch/Shell has 27.5% in Sakhalin-2, Mitsui has 12.5% and Mitsubishi has 10%.
The Sakhalin-2 project area, located on Russia’s Sakhalin Island, has reserves of 150 million tonnes of crude oil and 500 billion cubic meters of natural gas.