Management and operation of Sakhalin II Project

The Sakhalin Project Unit conducts business related to the Sakhalin II Project which operates off the coast of Sakhalin, Russia.

The Sakhalin II Project is the world's largest integrated oil and gas development project, operated by Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) in which MC holds a 10% stake, Gazprom 50% plus one share, the Royal/Dutch Shell Group 25.5% minus one share, and Mitsui & Co., Ltd 12.5%. Located in Russia's far east, which is geographically close to Japan, the project has an enormous strategic significance in respect to Japan's energy security. The first phase of the project began as six-month summertime production in 1999. Facilities such as marine platforms, pipelines, oil loading facilities, and LNG plants were constructed in the second phase of the project (year-round production of LNG and crude oil) that began in 2003. In December 2008, year-round production and shipping of crude oil started, and in March 2009, LNG shipping started. Of the annual production capacity of 9.60 million tons of LNG, about 60% is supplied to Japan.

Sakhalin Energy Investment Co., Ltd.