Japan Reportedly Gathering Data to Forecast Impact of Russia's Decision on Sakhalin-1

TOKYO, (Sputnik) - Japan is collecting data to determine a possible impact on the Russia-led energy project Sakhalin-1 after President Vladimir Putin issued an instruction to establish a new national operator for the project earlier this week, Japanese broadcaster NHK reported on Saturday, citing an official in the economy ministry.

On Friday, Putin instructed the government to appoint a new operator to the Sakhalin-1 oil and gas project to replace ExxonMobil's subsidiary, Exxon Neftegas Limited, which remains to be the operator of the Sakhalin-1 project and owns 30% of the shares.

"This is an important source of energy supply beyond the Near East. Its significance remains unchanged in terms of ensuring energy security," an official said, adding that Japan is gathering data to forecast a possible impact of Moscow's decision, as quoted in the report.

Russian energy and raw materials company Sakhalinmorneftegaz-Shelf, founded by Rosneft, will hold control of the Sakhalin-1 project until all stakes are distributed, which will later enable an extension of the term of reference. The foreign companies are required to inform Moscow whether they would continue to participate in the project in the course of a month.

In March, ExxonMobil announced its intention to withdraw from the project and declared force majeure in April, significantly reducing oil and gas production in the project.

On August 3, the company announced that it was planning to transfer its operating activities on the project to another, undisclosed legal entity. Other Sakhalin-1 project's shareholders are Japan's Sodeco with 30%, India's ONGC with 20%, and Russia's Rosneft with 20%.