Royal Dutch Shell Plc  .com Rotating Header Image

Bloomberg: Gazprom to Finish Sakhalin-2 Share Purchase in March (Update1)

By Shigeru Sato and Yuji Okada

Feb. 28 (Bloomberg) — OAO Gazprom plans to complete the acquisition of shares in Royal Dutch Shell Plc’s Sakhalin-2 oil and gas project by March 31, giving the Russian company control over the country’s first liquefied natural gas project.

“We’re targeting the end of March,” Igor Bakhtin, deputy head of Gazprom’s eastern projects department, told Bloomberg News in Tokyo when asked for the company’s timetable for the share transaction.

Gazprom agreed in December to buy 50 percent plus one share of the Sakhalin-2 project for $7.45 billion. Shell, Mitsui & Co. and Mitsubishi Corp. will each sell half of their stakes in the project to the Russian company. Shell and the two partners have invested $12 billion in the venture, which clinched contracts to export 5 million tons a year of LNG to Japanese buyers.

Sakhalin-2 has committed to sell almost all of its planned LNG output to utilities in Japan, South Korea and North America. The project is expected to produce 9.6 million tons a year of LNG, which is gas cooled to liquid for transport by tanker.

Shell owned 55 percent of Sakhalin-2, Mitsubishi 20 percent and Mitsui 25 percent before the agreement with Gazprom.

To contact the reporters on this story: Shigeru Sato in Tokyo at [email protected] ; Yuji Okada in Tokyo at [email protected] . and its sister non-profit websites,,,,,, and are owned by John Donovan. There is also a Wikipedia feature.

0 Comments on “Bloomberg: Gazprom to Finish Sakhalin-2 Share Purchase in March (Update1)”

Leave a Comment

Comment Rules

  • Please show respect to the opinions of others no matter how seemingly far-fetched.
  • Abusive, foul language, and/or divisive comments may be deleted without notice.
  • Each blog member is allowed limited comments, as displayed above the comment box.
  • Comments must be limited to the number of words displayed above the comment box.
  • Please limit one comment after any comment posted per post.

%d bloggers like this: