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The move comes on the back of Russian president Vladimir Putin’s opposition to special concessions (and this includes tax changes and PSAs) designed to encourage the development of high-cost offshore fields.
The report, which did not cite any source, stated, “Sakhalin Energy, the partnership set up by Shell, Mitsubishi Corp and Mitsui & Co to develop oil and gas in an offshore field off Sakhalin Island, has prepared lobbying materials arguing that Russia will receive US$45 billion in direct income over the next few years from the Sakhalin-2 project.”
“The company said its operations will also create ‘thousands of jobs for Russian nationals’ and award billions of dollars in contracts for Russian industry and businesses’ over its planned 49-year life,” added the report.
It is understood the consortium is the only PSA awarded by Russia in the 1990s which has no Russian partner.
