Rosneft and Sakhalin-1 Resolved an Out-of-Court Dispute Over Oil Flows

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Rosneft and the Sakhalin-1 consortium agreed on an out-of-court settlement of the dispute over the flow of oil from the northern end of Chayvo to the main part of the field. This is reported by the Reuters agency with reference to the top manager of ONGC Videsh.

According to him, Sakhalin-1 agreed to pay Rosneft $ 230 million.

The source of Interfax, who is familiar with the situation, also knows about the settlement by the parties to the dispute but is not aware of the terms of the agreements.

Rosneft does not comment on this information.

As reported, Rosneft sued Exxon Neftegas and other participants in the Sakhalin-1 project to recover from the project participants unjust enrichment and interest for the use of other people’s money accrued for the period from July 10, 2015, to May 31, 2018, in the total amount of 89 billion rubles. Claims relate to oil flows from the northern end of Chayvo to the main part of the field.

The operator of the Sakhalin-1 PSA project, Exxon Neftegaz Limited (ENL), is in talks with Rosneft on an out-of-court settlement of its claims. The amount of extra-judicial settlement discussed is less than 10% of the consortium’s annual average budget. According to a source familiar with the situation, on average, the annual budget of ENL is $ 2-3 billion, so it can be about $ 200-300 million.

Rosneft and Sakhalin-1 Resolved an Out-of-Court Dispute Over Oil Flows

The participants of the Sakhalin-1 project are Exxon Neftegaz Ltd. (30% stake), ONGC (20%), NK Rosneft (20%) and Japanese SODECO (30%). The project includes three oil and gas bearing deposits: Chayvo, Odoptu and Arkutun-Dagi on the northeastern shelf of Sakhalin. Potential recoverable reserves amount to 307 million tons of oil and 485 billion cubic meters of gas.

 

 

Source: Maritime News of Russia