New Sakhalin-1 operator gets licenses to PSA project fields

MOSCOW. Oct 24 (Interfax) - Licenses to the Odoptu Sea, Chayvo and Arkutun-Dagi gas condensate fields, which are being developed under the Sakhalin-1 production sharing project, have been registered in the name of the new project operator, Sakhalin-1 LLC, according to the state register of subsoil sections and licenses.

The new licenses were registered on October 21 and are valid until December 3, 2051.

Russian President Vladimir Putin on October 7 signed Decree No 723 "On further special measures in the fuel and energy sphere in connection with unfriendly actions by certain foreign countries and international organizations." Sakhalin-1 LLC, the new operator, was registered in Yuzhno-Sakhalinsk on October 14. JSC Sakhalinmorneftegaz-Shelf is the new operator's sole executive body.

According to a presidential decree and government instruction, a stake of 11.5% will go to JSC Sakhalinmorneftegaz-Shelf, in proportion to the stake in the PSA, and 8.5% will go to JSC RN-Astra. The 80% share of foreign participants - 30% attributable to Exxon Mobil , 30% to SODECO and 20% to ONGC - will be on the books of the LLC itself upon its registration, and foreign companies had a month to confirm their consent to receive proportional stakes in the new operator.

The fields have combined reserves of 307 million tonnes of oil and 485 billion cubic meters of gas. Annual production is 11.3 million tonnes of oil.