Putin orders new operator for Sakhalin-1 energy project where India has stakes

Russian President Vladimir Putin has signed a decree, published on Friday, to set up a new operator for the Sakhalin-1 oil and gas project, where India has stakes.

US Exxon Mobil, with a 30% stake, was the operator of Sakhalin-1, in Russia's Far East. Exxon been trying to exit Russia operations since March.

The Russian company Rosneft is a partner in the project along with ONGC Videsh, the overseas investment arm of India's ONGC, and Japan's SODECO. In the Sakhalin 1 oil and gas project, India’s ONGC Videsh has had a 20% equity stake since year 2001

The decree said the Russian government was setting up a new Russian limited liability company, which would own the investors' rights, including the operator's rights of Exxon Neftegaz.

The decree said the foreign partners should apply to the government within a month after the new company is set up, to notify it of their agreement to take up shares in the new entity in accordance with their stakes in the previous company.

Rosneft subsidiary Sakhalinmorneftegaz-Shelf is appointed as the manager of the new company.

Putin also signed a decree in July to take full control of Sakhalin-2, another gas and oil project in the Russian Far East. Japan continues to purchase oil from Sakhalin-2.