Rosneft Sues Sakhalin-1 Partners

Russian state-run Rosneft has filed a $1.4bn lawsuit against its fellow Sakhalin-1 participants in Russia's far east, charging them with “unfounded enrichment and interest gained by using third party’s funds (other people’s money) during 2015-2018.”

The 7-page lawsuit, sent to Sakhalin region’s arbitration court and seen by NGW, are against five participant companies in Sakhalin-1 project: Sakhalinmorneftegaz-Shelf, RN-Astra, ExxonMobil, Sakhalin Oil & Gas Development Co (Sodeco) and Indian ONGC Videsh. It does not go into the details of the argument.

Although discovered several decades ago, the Sakhalin-1 fields under production sharing agreement (PSA) were not developed completely until new technologies became available, according to ExxonMobil.

Rosneft wants $160mn compensation from Sakhalinmorneftegaz; $120mn from RN-Astra; $420mn from ExxonMobil; $420mn from Sodeco; and $280mn from India’s ONGC Videsh.

ExxonMobil is 30% owner and operates the project, while Japanese Sodeco also has 30%, while Rosneft and Indian ONGC each have 20%.

The Sakhalin-1 project entails developing three offshore fields Chaivo, Odoptu, and Arkutun-Dagi, which last year produced 200,000 b/d oil and 2mn m³/d of associated gas. The preliminary court hearing is to be held September 10.