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Exxon/Gazprom begin drafting Sakhalin cooperation

Gazprom and ExxonMobil may be closer to reaching a deal on cooperating on Sakhalin Island, despite protracted legal wrangling Gazprom and ExxonMobil may be closer to reaching a deal on cooperating on Sakhalin Island, despite protracted legal wrangling.

By Anna Gorshkova, Staff reporter and Svetlana Savateeva 4 November 2016 Europe & Russia / LNG 0 22688

A Gazprom rig at Sakhalin. The company wants to cooperate with ExxonMobil. (Gazprom)

After more than 10 years of talks, ExxonMobil’s Russian subsidiary Exxon Neftegas and Gazprom have started to draft a potential agreement to use gas from Exxon’s Sakhalin 1 project to feed the yet-to-be-built third train at Gazprom’s Sakhalin 2 LNG plant, according to a government report on the results of production-sharing agreements (PSAs) viewed by Interfax.

The two companies, along with the Russian Energy Ministry, Rosneft (Exxon’s partner in Sakhalin 1) and Sakhalin Energy (the project company behind Sakhalin 2), have held six rounds of talks...