RUSSIA: Gazprom Buys Major Stake in Sakhalin Energy

Russia's gas giant Gazprom buys a majority stake in a major oil and gas project in Russia's Far East, the energy giant said in a statement.

In December 2006, Gazprom purchased 50% plus one share of Sakhalin Energy, the project operator of the Sakhalin II oil and gas project, off Russia's Pacific Coast, for $7.45 billion.

Sakhalin Energy is developing the $22 billion oil and liquefied natural gas (LNG) project under a production-sharing agreement (PSA) with the Russian government, signed in 1994.

Previously, British-Dutch oil major Shell held a 55% stake in the operator, and Japan's Mitsui and Mitsubishi owned 25% and 20%, respectively.

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