New Russian operator of Sakhalin-2 projects starts operations

MOSCOW. Aug 19 (Interfax) - The new Russian operator of the Sakhalin-2 oil and gas project in eastern Russia, Sakhalin Energy LLC "began active work" on Friday, the company said in a press release.

The rights and obligations of the former operator, Bermuda-based Sakhalin Energy Investment Company Ltd, have been transferred to the new company, along with its staff, with the preservation of current social security benefits and remuneration. The website of the project operator has been changed to sakhalinenergy.ru.

The license for loading/unloading hazardous cargo on internal waterway transport and at seaports has been transferred to the new operator, data from the Unified State Register of Legal Entities showed.

"Stable oil and gas production is being maintained within the context of the infrastructure of the Sakhalin-2 project. Production and shipment of hydrocarbons to buyers are proceeding without disruptions and according to the schedule approved for 2022," the release said.

"Sakhalin Energy has a strong cash reserve to meet all financial obligations to staff, the Russian side and contractors in the short-term and long-term future," the company said.

President Vladimir Putin signed a decree in June on "special economic measures in the fuel and energy sector in connection with the unfriendly actions of certain foreign nations and international organizations." Under the decree, the operator of Sakhalin-2, Bermuda-based Sakhalin Energy Investment Company Ltd was replaced by a Russian company.

Sakhalin-2 is being carried out under a production sharing agreement.