"GL [General License] 55 authorizes, through 12:01 a.m. eastern daylight time September 30, 2023, all transactions prohibited by the determination related to the maritime transport of crude oil originating from the Sakhalin-2 project ("Sakhalin-2 byproduct"), provided that the Sakalin-2 byproduct is solely for importation into Japan," the Treasury Department said on Tuesday.
The Sakhalin-2 project is exploring two reserves - Piltun-Astokhskoye (mainly oil) and Lunskoye (mainly gas) - in the northeast of the Sakhalin shelf. The project was managed by Sakhalin Energy, in which 50% plus 1 share belong to the Russian energy giant Gazprom, 27.5% minus 1 share to the British-Dutch petroleum company Shell, 12.5% to Mitsui & Co. Ltd and 10% to the Mitsubishi Corporation.
In June, Russian President Vladimir Putin signed a decree on special economic measures in the fuel and energy sector amid unfriendly actions of foreign states. The decree provided for the change of the Sakhalin-2 operator. According to the decree, the property of Sakhalin Energy is to be handed over to Russia's ownership with simultaneous transfer to the new operator for free use.
Gazprom will maintain its stake in the project, while foreign firms have to declare within a month whether they agree to accept the same stake in the new operator. Then the Russian government will decide in three days whether to transfer a stake to a foreign company. The non-transferred shares will be sold and foreign companies will receive proceeds minus the cost of any damage caused by them.
On August 3, the Russian government ordered creating the Sakhalin Energy LLC - the new operator of the Sakhalin-2 project - registered in the city of Yuzhno-Sakhalinsk. On August 30, the Russian government published an order allowing Mitsui to take ownership of a 12.5% stake in the new operator. The following day, Moscow also allowed Mitsubishi to transfer a 10% stake to DGS Japan Co., Ltd, a 100% subsidiary of Mitsubishi.
However, Shell announced on September 1 that it not participate in the Sakhalin-2 project and informed its partners and the Russian government about its decision.