- Mitsui & Co. and Mitsubishi hold minority stakes and operate the Sakhalin-2 oil and gas project alongside Gazprom.
- Gazprom acquired a stake in Sakhalin Energy, a corporate change reported by media outlets.
Shell and Gazprom agree on engineering roadmap for Sakhalin expansion
What happened
Shell and Gazprom agreed to advance engineering work for the Sakhalin expansion project. Shell had been pressing its majority partner to make the project larger, pointing toward Gazprom’s Sakhalin III resources to find additional gas. Ben van Beurden and Alexey Miller signed the roadmap in Sochi.
Why it matters
The agreement indicates a push to expand production capacity in the Sakhalin region, even after Shell surrendered control of Sakhalin II to Gazprom seven years prior. This expansion aims to utilize Sakhalin III resources and address the need for additional gas supply.
Gazprom acquired a stake in Sakhalin Energy, and Mitsui & Co. and Mitsubishi operate the Sakhalin-2 oil and gas project alongside Gazprom.
Who's involved
- ShellBritish multinational oil and gas company pushing for project expansion
- GazpromRussian oil and gas company partnering on the Sakhalin expansion
- SakhalinLarge Russian island where the Sakhalin energy project is located
- Ben van BeurdenDutch chief executive involved in agreeing to advance engineering work
- Alexey MillerRussian businessman who signed the roadmap with Ben van Beurden
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- GazpromSpeculative
Gazprom might see increased project scope and revenue potential through the joint venture