The Audit Chamber estimates that gas sale revenues under the Sakhalin-1 project, which is being implemented through a production sharing agreement, should total $170 billion, and it has rebuked the project's participants and the Energy Ministry for dragging their feet in negotiations on selling the gas, Interfax reported.
"The existing field development program for the Sakhalin-1 project envisages $170 billion in revenues from gas sales. However, gas production at the Chayvo field is to date not being carried out due to a lack of agreement on the natural gas sales price between the Sakhalin-1 project operator Exxon Neftegas and Gazprom," the chamber said.
"The Energy Ministry is not demonstrating sufficient activeness in promoting these negotiations," the chamber reported. "As a result, the foregone gas production and sales opportunities are negatively impacting the revenues of the project's participants," the chamber said.