Novatek will receive Shell shares in the Russian Sakhalin-2 project

The Russian government has approved the sale of Shell’s stake in the Sakhalin-2 oil and gas project to Novatek.

According to the decision published by the Russian government, Novatek will buy 27.5 percent of Shell’s shares in Sakhalin-2 for a price of 94.8 billion rubles (approximately $1.2 billion).

AMONG THE LARGEST OIL AND LNG PRODUCTION PROJECTS

The Sakhalin-2 project in eastern Russia is among the largest oil and liquefied natural gas (LNG) production projects in the country.

Before the Ukrainian war, while Sakhalin-2’s main partners were Gazprom with 50 percent, Shell with 27.5 percent, Mitsui with 12.5 percent and Mitsubishi with 10 percent, Shell announced in September that it would withdraw from the project.

Russian newspaper Kommersant reported on March 6 that Novatek, the country’s largest private natural gas company, has asked the Russian government to buy Shell’s shares. (AA)