Sakhalin LNG and oil production to decline in 2024

According to the local administration, production of LNG, oil and gas on Sakhalin, a Russian Pacific island, will decline in 2024.

According to the administration's figures, production of LNG from Sakhalin Energy, a project led by Kremlin controlled Gazprom in Russia, decreased by around 2 percent to 10,2 million metric ton, or about a third of Russia’s total.

The administration said that the oil and gas production at Sakhalin-1 project has fallen by 9.8% since 2023 without providing any figures.

The administration stated on its website that "Oil and Gas production has been declining steadily since 2020 due to the natural aging of fields."

Gazprom is the largest shareholder in Sakhalin Energy, located at the southern tip Sakhalin. Mitsui (12.5%), and Mitsubishi (10%) are also shareholders.

Shell, like many other Western companies, abandoned the project after Moscow decided to send troops into Ukraine by February 2022.

ExxonMobil left Russia as well in 2022. Moscow has set January 1, 2026 as the deadline for ExxonMobil to sell its 30% stake in Sakhalin 1 by ExxonMobil.

Rosneft, ONGC Videsh and SODECO are each holding 20% of the project. (Reporting and editing by David Evans; Oksana Kobieva, Vladimir Soldatkin)

(source: Reuters)