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FSUOGM: Gazprom buys Shell's stake in Sakhalin LNG

A subsidiary of Russia’s national gas company Gazprom has acquired Shell’s former 27.5% interest in the Sakhalin-2 LNG project in the Far East for $1.1bn, according to a government order.

Like other Western oil majors, Shell took the decision to exit Russia in response to Moscow’s invasion of Ukraine. But the withdrawal process has proved difficult, not least because the Russian government has sought to avoid any impact on production levels at projects by preventing sales without its approval. 

Earlier, the government had decreed that Shell’s interest in the 10mn tonne per year (tpy) LNG export terminal should be sold to Gazprom’s rival, Novatek. That order a year ago has now been nullified, without the government providing any explanation.

In a statement late on March 25, the government said that the 27.5% interest in the Sakhalin Energy operating company, which manages the LNG terminal and offshore fields that feed it with gas, would be sold for nearly RUB95bn ($1bn).

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