Russian Energy Ministry Sergei Shmatko hopes Gazprom and Exxon Neftegaz Ltd. will reach a compromise on the Sakhalin-1 energy project in the nearest future. "We are planning to hold talks and I hope we'll manage to reach a compromise," Shmatko said on Monday, adding that talks could be held soon, including with the Sakhalin-1 project operator Exxon Neftegaz Ltd., a subsidiary of U.S. oil major Exxon Mobil. "If the project is less and less profitable, the government may raise the question of changing the operator," Sakhalin region Governor Alexander Khoroshavin said earlier.
A budget for Sakhalin-1 has not yet been adopted. At a meeting in late 2009, the Authorized State Body (ASB) for the project approved only $1 billion funding for development of the Chayvo and Odoptu fields, saying that $3.5 billion budget proposed by Exxon Neftegaz Ltd. was excessive. Gazprom Chief Executive Officer Alexei Miller said on Friday Gazprom was not planning to join the Sakhalin-1 project. Exxon Neftegaz Limited is the operator of the Sakhalin-1 project with a 30% stake, Russia's state-controlled Rosneft holds 20%, India's ONGC 20% and Japan's Sodeco 30%. The deposit, operated under a production sharing agreement, holds potential reserves of 307 million tons of oil and 485 billion cubic meters of gas.
