Russia's Rosneft demands $1.4bn from partners in Sakhalin-1 project

Russia's Rosneft demands $1.4bn from partners in Sakhalin-1 project
Development of the Odoptu field has included world-class performance in the drilling and completion of seven extended-reach wells. / Exxon Neftegas Limited
By bne IntelliNews July 24, 2018

Russian state oil major Rosneft is claiming RUB89.1bn ($1.4bn) from its foreign partners in the Sakhalin-1 liquefied natural gas project, Vedomosti daily said on July 23 citing the island's court materials.

Reportedly the claim is against five Russian companies, out of which two are affiliated with Rosneft. Those are SakhalinMorNefteGaz-Shelf and RN-Astra, from which RUB17.8bn compensation is demanded. 

Notably, Exxon Neftegaz Limited controlled by the US major Exxon, a subsidiary of Japanese SODECO, and Indian ONGC Videsh are also part of the case, with Rosneft demanding rewards of RUB26.7bn, RUB26.7bn, and RUB17.8bn, respectively.

Exxon, SODECO, and ONGC control 30%, 20%, and 20% in Sakhalin-1, respectively. Previous reports indicated that ExxonMobil had settled its exit from Sakhalin-1 as it was pulling out of all joint ventures with Rosneft due to the US sanctions.

Russia claimed $637mn in income tax breaks Exxon allegedly received under production sharing agreements in the joint venture of Sakhalin-1. In September 2017 Russia's finance ministry said the issue has been solved in a "mutually beneficial compromise", the details of which are not disclosed.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

France's spending on Russian LNG surges to over €600mn this year

France's spending on Russian liquefied natural gas (LNG) surged to over €600mn this year, EU data reveals, Politico reports. The increase comes as French President Emmanuel Macron becomes ... more

What next for oil markets after Iranian strike on Israel?

WHAT: Oil prices have fallen following Iran's strike against military facilities in Israel. WHY: The risk of escalation was largely priced in last week in anticipation of the strike, and Israel ... more

LNG imports improving EU energy security as Russian gas supplies fall to 8% of gas imports

Liquefied natural gas helps make Europe’s gas supply more secure as it doesn’t rely on existing pipeline infrastructure, allowing EU countries to diversify the sources of their imports, the ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    9 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  4. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    24 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    29 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    22 days ago

Reports

Dismiss