FSUOGM: Novatek purchases 27.5% stake in Sakhalin Energy for $1.1bn

The Russian government has approved the sale of a 27.5% stake in Sakhalin Energy to Novatek, the largest independent natural gas producer in Russia.

According to an official order released on April 12, Novatek will purchase the stake in Sakhalin Energy, the operator of the Sakhalin-2 energy project, for RUB94.8bn ($1.1bn). The document stated that the sale is subject to Novatek Moscow Region LLC.

Sakhalin Energy was previously operated by a consortium of companies, including Gazprom, Shell, Mitsui and Mitsubishi.

Gazprom held a majority stake of 50% plus one share, while Shell held a stake of 27.5% minus one share. However, in August 2022, the Russian government established a new local operator for the Sakhalin-2 project, and all foreign companies were allowed to keep their stakes in the new operator. Shell decided to withdraw from the project, paving the way for Novatek to purchase its stake in Sakhalin Energy.

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