Following Russia's military invasion of Ukraine, the US oil giant announced that it will begin withdrawal procedures from the oil and natural gas development project "Sakhalin 1" in Sakhalin, the Russian Far East.


The Japanese government and major trading companies are also participating in this project, and we will be forced to take difficult measures.

"Sakhalin 1", along with "Sakhalin 2", is one of the large-scale oil and gas development projects underway off the northeastern coast of Sakhalin in the Russian Far East, and Japan is deeply involved.


ExxonMobil, a major American oil company, announced on the 1st that it will start the procedure for withdrawal.


Major trading companies such as "Itochu" and "Marubeni" participate in "SODECO / Saharin Oil and Gas Development" in which the Japanese government has a 50% stake, and hold a 30% stake in the project through this company. increase.


Sakhalin Oil and Gas Development told NHK that "information is currently being confirmed."


In addition, the Ministry of Economy, Trade and Industry states, "We are currently collecting information and are considering future measures."


For Japan, which relies on the Middle East for most of its crude oil imports, Sakhalin-I's crude oil has the advantage of diversifying its sources, being geographically close, and reducing transportation costs.


However, as a major American oil company announces its withdrawal, it will be forced to take a difficult response.

What is "Sakhalin 1"?

"Sakhalin 1" is a large-scale oil and natural gas development project that Japan is participating in along with Sakhalin 2 off the northeastern coast of Sakhalin in the Russian Far East, and currently mainly ships crude oil.


The total project cost is more than 1.3 trillion yen.


The business is jointly funded by the United States, Russia, India, and Japan.


The center is the American oil giant ExxonMobil, which has a 30% stake.


In addition, 20% are Russian government-affiliated energy companies and 20% are Indian state-owned oil companies.


Through this company, major trading companies "Itochu" and "Marubeni" and the government-sponsored "Petroleum Resources Development" participated in "SODECO / Saharin Oil and Gas Development" in which the government has a 50% stake. It holds a 30% stake in the project.


Compared to Sakhalin 2, the Japanese government is more involved, and the public and private sectors have been involved in the development.


It has been produced in three oil fields since 2005, producing 300,000 barrels of crude oil daily in 2018.


The crude oil produced is transported by pipeline to a shipping terminal on the coast of the Khabarovsk region in the Far East, which is more than 200 kilometers away, and then exported to Japan and other countries by tanker.


We are also considering developing natural gas in the future, producing LNG = liquefied natural gas, and exporting it to Japan and other countries.