Sakhalin Energy said on Thursday it produced 11.5 million tonnes of liquefied natural gas (LNG) and around 3.7 million tonnes of its Sakhalin blend crude oil from its facilities in Russia’s far east in 2022, exceeding its production plan.

Managing Director Andrey Oleynikov said the company had managed to continue production despite “a period of unprecedented pressure from external factors on production and economic activity.”

In 2021, the company shipped about 10.4 million tonnes of LNG and 4.2 million tonnes of crude oil.

State-run gas giant Gazprom GAZP.MM is the main shareholder in the Sakhalin-2 project, holding 50%. The previous No. 2 investor Shell SHEL.L quit after Russia invaded Ukraine last year, handing its stake to operator Sakhalin Energy.

Other investors, including Japan’s Mitsui & Co 8031.T and Mitsubishi Corp 8058.T retained their stakes after the Kremlin ordered foreign companies from so-called “unfriendly countries” – those that have hit Russia with sanctions – would need to apply to keep their shareholdings.

Sakhalin 2 could generate twice the revenue this year that it did before the Ukraine conflict thanks to long-term deals with Asian buyers and higher prices, according to analysts and Reuters calculations.

In a statement the company said the first LNG and oil shipments of 2023 have been successfully delivered and its production remains on schedule. The main markets for exports are Japan, China, South Korea and Indonesia, Sakhalin Energy said.
Source: Reuters