Sakhalin-2 Recoups

Gazprom's Sakhalin-2 venture off Russia's Pacific coast with Royal Dutch Shell said its expenses have been recovered and production sharing has begun.

Sakhalin Energy, the project operator, recovered all $24.5 billion of its expenses and is now sharing production profit, the company said in a statement Friday. The federal and regional governments are expected to receive more than $100 billion over the course of the projects life, Sakhalin Energy said.

Gazprom owns 50 percent plus a share of Sakhalin Energy, while Shell holds 27.5 percent. Mitsui and Mitsubishi of Japan own 12.5 percent and 10 percent, respectively.

(Bloomberg)

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